Department of Labor awards $65.4M contract to Serrato Corporation for Job Corps Center services

Contract Overview

Contract Amount: $65,422,659 ($65.4M)

Contractor: Serrato Corporation

Awarding Agency: Department of Labor

Start Date: 2020-05-15

End Date: 2026-05-31

Contract Duration: 2,207 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FLINT GENESEE JOB CORPS CENTER WITH OA/CTS

Place of Performance

Location: FLINT, GENESEE County, MICHIGAN, 48505

State: Michigan Government Spending

Plain-Language Summary

Department of Labor obligated $65.4 million to SERRATO CORPORATION for work described as: FLINT GENESEE JOB CORPS CENTER WITH OA/CTS Key points: 1. The contract value of $65.4M over approximately 6 years represents a significant investment in vocational training. 2. Serrato Corporation is the sole awardee, raising questions about the extent of competition. 3. The contract's duration and fixed-price nature suggest potential cost control but also risk if scope changes. 4. The sector is 'Other Technical and Trade Schools,' indicating a focus on specialized workforce development.

Value Assessment

Rating: fair

The contract value of $65.4M over 2207 days (approx. 6 years) averages to about $29,643 per day. Benchmarking this against similar contracts for vocational training centers is difficult without more specific service details, but the overall value suggests a substantial program.

Cost Per Unit: $29,643/day

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies some initial competition but potentially limited due to source exclusion. This method may not have yielded the most competitive pricing.

Taxpayer Impact: The pricing is determined through a fixed-price contract, aiming to control costs. However, the limited competition might mean taxpayers are not getting the absolute best price possible.

Public Impact

Provides essential job training and career services to individuals, potentially impacting workforce development in Michigan. The contract supports a specific educational/vocational sector, contributing to the skills pipeline. Awarding to Serrato Corporation impacts local employment and economic activity within the service area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Long contract duration
Potential for scope creep

Positive Signals

Fixed-price contract for cost control
Supports job training initiatives

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' category, a sector focused on vocational and skills-based education. Spending in this area is crucial for workforce development and addressing specific industry needs. Benchmarks are hard to establish without more granular data on similar Job Corps center operations.

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 opportunities were missed for small businesses in this contracting process.

Oversight & Accountability

The contract is managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Oversight will be critical to ensure service delivery meets objectives and that the fixed-price structure remains effective throughout the contract term.

Related Government Programs

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

Risk Flags

Limited competition may have led to a higher price.
Long contract duration increases risk of unforeseen costs or performance issues.
Lack of small business participation noted.
Specific services (OA/CTS) are not clearly defined in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $65.4 million to SERRATO CORPORATION. FLINT GENESEE JOB CORPS CENTER WITH OA/CTS

Who is the contractor on this award?

The obligated recipient is SERRATO 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 $65.4 million.

What is the period of performance?

Start: 2020-05-15. End: 2026-05-31.

What specific services are included under this contract, and how do they align with the goals of the Job Corps program?

The contract is for 'OA/CTS' services at the Flint Genesee Job Corps Center. While the specific acronyms require further definition, they likely pertain to operational, administrative, and potentially career training support. Alignment with Job Corps goals would involve assessing if these services directly contribute to student success, program efficiency, and meeting national training objectives.

What was the rationale for excluding certain sources, and did this exclusion significantly impact the final contract price?

The rationale for excluding sources is not provided in the data. However, 'EXCLUSION OF SOURCES' typically implies that only a subset of potential offerors were eligible to bid, often due to specific requirements, past performance, or unique capabilities. This limitation inherently reduces competition, potentially leading to a higher price than if the competition had been fully open.

How will the effectiveness of Serrato Corporation's service delivery be measured and ensured over the contract's six-year duration?

Effectiveness will likely be measured through performance metrics defined in the contract, such as student placement rates, training completion rates, and operational efficiency. The Department of Labor's Office of the Assistant Secretary for Administration and Management will be responsible for monitoring these metrics and ensuring Serrato Corporation meets its contractual obligations.

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: 1630J5-19-R-00004

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 135 WEST COUNCIL ST, TUCSON, AZ, 85701

Business Categories: 8(a) Program Participant, Category Business, Community Developed Corporation Owned Firm, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $71,345,348

Exercised Options: $70,099,983

Current Obligation: $65,422,659

Actual Outlays: $52,463,249

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline