Department of Labor awards $20.7M contract to Covenant Learning Solutions for technical and trade school services

Contract Overview

Contract Amount: $20,679,466 ($20.7M)

Contractor: Covenant Learning Solutions LLC

Awarding Agency: Department of Labor

Start Date: 2024-07-01

End Date: 2026-07-31

Contract Duration: 760 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: KITTRELL JOB CORPS CENTER WITH OA CTS NEW 5 YEAR PROCUREMENT AWARD

Place of Performance

Location: KITTRELL, VANCE County, NORTH CAROLINA, 27544

State: North Carolina Government Spending

Plain-Language Summary

Department of Labor obligated $20.7 million to COVENANT LEARNING SOLUTIONS LLC for work described as: KITTRELL JOB CORPS CENTER WITH OA CTS NEW 5 YEAR PROCUREMENT AWARD Key points: 1. The contract value of $20.7 million over approximately two years suggests a significant investment in vocational training. 2. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicates a broad initial search for vendors, followed by a specific exclusion, which warrants further investigation into the rationale. 3. The fixed-price contract type aims to control costs, but the absence of detailed performance metrics makes it difficult to assess value for money. 4. The contract is for 'Other Technical and Trade Schools' services, aligning with the Job Corps program's mission to provide vocational training to at-risk youth. 5. The duration of the contract (760 days) is relatively short for a program requiring sustained educational delivery and student support. 6. The number of bids received (10) suggests a moderate level of competition for this specific service.

Value Assessment

Rating: fair

The contract value of $20.7 million for approximately two years of service for technical and trade school operations appears substantial. Benchmarking against similar Job Corps center procurements would be necessary to determine if this represents a fair price. Without detailed service delivery metrics or performance outcomes, assessing the true value for money is challenging. The fixed-price nature provides cost certainty but may not incentivize optimal service quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the opportunity was initially broadly advertised, certain sources were later excluded. The presence of 10 bidders indicates a degree of market interest, but the exclusion of sources raises questions about the breadth and fairness of the competition. Further details on the exclusion criteria are needed to fully understand the competitive landscape.

Taxpayer Impact: The limited competition, due to source exclusion, may have resulted in a higher price for taxpayers than if a truly open and unrestricted competition had occurred. It also limits the government's ability to leverage the full spectrum of market capabilities.

Public Impact

The primary beneficiaries are at-risk youth and young adults who will receive vocational training and educational services through the Job Corps program. The services delivered are expected to include technical and trade instruction, career counseling, and potentially job placement assistance. The geographic impact is focused on North Carolina, where the KITTRELL JOB CORPS CENTER is located. The contract has implications for the local workforce, providing employment opportunities for instructors, support staff, and administrative personnel at the training center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the procurement process needs clarification to ensure fair competition and prevent potential favoritism.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and value for money of the services provided.
The relatively short contract duration may lead to frequent re-procurement cycles, potentially disrupting program continuity and increasing administrative burden.

Positive Signals

The contract was awarded through a competitive process, indicating that multiple vendors were considered.
The fixed-price contract type provides cost predictability for the Department of Labor.
The services align with the critical mission of the Job Corps program to equip individuals with job skills.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The market for such services is driven by government funding for workforce development programs like Job Corps. Comparable spending benchmarks would involve analyzing other Job Corps center procurements and similar federal workforce training initiatives to gauge cost-effectiveness and market rates for these specialized educational services.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Covenant Learning Solutions engages them. The extent of subcontracting to small businesses is not detailed in this award notice, making it difficult to assess the broader impact on the small business ecosystem.

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). Accountability measures are typically embedded within the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award notices and public databases, though detailed operational oversight information may not be publicly available. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Vocational Training Grants
Department of Labor Education and Training Contracts

Risk Flags

Limited competition due to source exclusion
Lack of detailed performance metrics
Potential for cost overruns if fixed price does not adequately cover all service needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $20.7 million to COVENANT LEARNING SOLUTIONS LLC. KITTRELL JOB CORPS CENTER WITH OA CTS NEW 5 YEAR PROCUREMENT AWARD

Who is the contractor on this award?

The obligated recipient is COVENANT LEARNING SOLUTIONS 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 $20.7 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-07-31.

What specific technical and trade skills are being taught under this contract, and how do they align with current labor market demands?

The contract specifies services under the 'Other Technical and Trade Schools' (NAICS 611519) category. While the exact curriculum is not detailed in the award notice, Job Corps centers typically offer training in high-demand fields such as healthcare, information technology, advanced manufacturing, and skilled trades (e.g., electricians, plumbers, welders). The alignment with current labor market demands is a critical factor in the success of the Job Corps program. The Department of Labor, in collaboration with industry partners and local workforce boards, usually ensures that training programs are responsive to regional and national employment trends. Performance metrics within the contract would likely track student placement rates in jobs related to their training, serving as an indirect indicator of market relevance.

What is the historical spending pattern for the KITTRELL JOB CORPS CENTER, and how does this award compare?

Without access to historical contract data specifically for the KITTRELL JOB CORPS CENTER, a direct comparison is not possible. However, the award of $20.7 million over approximately two years (760 days) suggests a significant operational budget for the center. Job Corps centers vary in size and scope, impacting their annual funding. Typical contracts for operating Job Corps centers can range from several million to tens of millions of dollars annually, depending on student capacity, geographic location, and the range of services provided. This award appears to be a substantial procurement, likely covering comprehensive operational costs for the center during its term.

What were the specific reasons for excluding certain sources during the procurement process?

The procurement notice states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. The specific reasons for excluding certain sources are not publicly detailed in the award notice. Typically, exclusions can occur for various reasons, such as a vendor failing to meet mandatory pre-qualification criteria, past performance issues, organizational conflicts of interest, or if the government determined that a specific set of sources was most likely to meet the requirements after an initial broad solicitation. Understanding these reasons would require reviewing the detailed solicitation documents and any associated justifications for exclusion, which are usually not made public.

What are the key performance indicators (KPIs) used to measure the success of Covenant Learning Solutions in delivering these services?

The provided award notice does not detail the specific Key Performance Indicators (KPIs) for this contract. However, for Job Corps center operations, common KPIs typically include student enrollment and retention rates, completion rates for training programs, job placement rates post-graduation, average starting wages of placed graduates, and employer satisfaction with graduates. The Department of Labor would establish these metrics within the contract's Statement of Work to ensure the contractor is meeting performance expectations and delivering effective vocational training and support services.

How does the per-student cost under this contract compare to national averages for Job Corps or similar vocational training programs?

Calculating a precise per-student cost requires knowing the total number of students served under this contract and the total contract value allocated to direct student services. The $20.7 million contract is for the overall operation of the KITTRELL JOB CORPS CENTER, which includes administrative, facility, and support costs in addition to direct training. National average per-student costs for Job Corps can vary significantly based on program intensity, location, and services offered. Without the student capacity and detailed cost breakdown for this specific contract, a reliable per-student cost comparison to national averages cannot be accurately determined from the information provided.

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-00013

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 407 W UNIVERSITY AVE STE 220, GEORGETOWN, TX, 78626

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $74,024,548

Exercised Options: $28,878,162

Current Obligation: $20,679,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline