Department of Labor awards $53M for Job Corps Center operations, with 9 bidders vying for the contract

Contract Overview

Contract Amount: $52,986,147 ($53.0M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2020-12-01

End Date: 2026-05-31

Contract Duration: 2,007 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUND THE DAYTON JOB CORPS CENTER W/ OA/CTS

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45417

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $53.0 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: FUND THE DAYTON JOB CORPS CENTER W/ OA/CTS Key points: 1. The contract value of $52.9M over its period of performance suggests a significant investment in workforce development. 2. With 9 bidders, the competition level indicates a healthy market interest in providing Job Corps services. 3. The firm-fixed-price contract type aims to control costs by shifting risk to the contractor. 4. The contract duration of approximately 5.5 years allows for sustained program delivery and potential for long-term impact. 5. The geographic focus on Ohio for the Dayton Job Corps Center highlights a regional approach to training. 6. The absence of small business set-aside or subcontracting goals warrants further investigation into small business participation.

Value Assessment

Rating: good

The contract's value of $52.9M over roughly 5.5 years averages around $9.6M annually. Benchmarking this against other Job Corps center operations would provide a clearer picture of value for money. The firm-fixed-price structure is generally favorable for cost control, assuming the scope of work is well-defined and stable. Without specific performance metrics or comparisons to similar centers' operational costs, a definitive value assessment is challenging, but the competitive bidding process suggests a reasonable price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that the initial solicitation was broadly advertised, but specific sources were later excluded. With 9 bidders, the competition appears robust, which typically leads to better price discovery and potentially lower costs for the government. The significant number of bidders suggests that the market for providing Job Corps center services is competitive and that multiple entities possess the capabilities to fulfill the contract requirements.

Taxpayer Impact: A high level of competition generally benefits taxpayers by driving down prices and encouraging contractors to offer the most cost-effective solutions. The presence of 9 bidders suggests that taxpayer funds are likely being used efficiently in securing these essential workforce development services.

Public Impact

The primary beneficiaries are students seeking vocational training and employment opportunities through the Job Corps program. The contract supports the delivery of comprehensive training, career counseling, and job placement services. The geographic impact is focused on the Dayton, Ohio region, providing local workforce development resources. Workforce implications include the creation of jobs for instructors, administrative staff, and support personnel at the Job Corps center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business set-aside or subcontracting goals may limit opportunities for small businesses in this significant contract.
The 'exclusion of sources' in the competition type requires further scrutiny to ensure fairness and prevent potential market distortion.

Positive Signals

The high number of bidders (9) indicates strong market interest and a competitive environment, likely leading to better pricing.
The firm-fixed-price contract type helps manage cost uncertainty for the government.
The long contract duration allows for stable program operations and consistent service delivery.

Sector Analysis

The Job Corps program falls within the broader education and workforce development sector, specifically focusing on vocational training for at-risk youth. This contract supports the operation of a specific Job Corps center, which is a key component of the federal government's strategy to address skill gaps and promote economic opportunity. The market for operating such centers involves educational service providers, non-profits, and private companies specializing in training and workforce solutions. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers nationwide.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, nor are there explicit subcontracting goals mentioned in the provided data. The fact that it was competed broadly suggests that large businesses may have been the primary participants, although small businesses could have bid as part of joint ventures or as subcontractors if opportunities arose. Further analysis would be needed to determine the extent of small business involvement, either as prime contractors or through subcontracting, and its impact on the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would likely fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which is responsible for administrative and management functions. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, but specific details on ongoing oversight activities and Inspector General involvement would require deeper investigation into the contract's administration.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Education Grants
Youth Employment Services

Risk Flags

Potential for limited small business participation due to lack of set-aside.
Need for clarity on the justification for 'exclusion of sources' in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $53.0 million to DYNAMIC EDUCATIONAL SYSTEMS INC. FUND THE DAYTON JOB CORPS CENTER W/ OA/CTS

Who is the contractor on this award?

The obligated recipient is DYNAMIC EDUCATIONAL SYSTEMS INC.

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 $53.0 million.

What is the period of performance?

Start: 2020-12-01. End: 2026-05-31.

What is the historical spending pattern for the Dayton Job Corps Center operations?

Analyzing historical spending for the Dayton Job Corps Center is crucial for understanding cost trends and identifying any significant fluctuations. Without access to prior contract data specifically for this center, it's difficult to provide a precise historical spending pattern. However, the current award of approximately $53 million over 5.5 years suggests an average annual expenditure of around $9.6 million. This figure should be compared to previous contract values, if available, to assess whether spending has increased, decreased, or remained relatively stable. Significant deviations from historical averages might warrant further investigation into the reasons, such as changes in program scope, inflation, or market conditions. Understanding this pattern helps in evaluating the current award's reasonableness and forecasting future budgetary needs.

How does the per-student cost of this Job Corps center compare to national averages or similar centers?

Determining the per-student cost requires knowing the number of students served by the Dayton Job Corps Center and the total operational cost. The current contract value is $52,986,146.87. If, for example, the center serves 1,000 students annually, the average annual cost would be approximately $9.6 million, translating to roughly $9,600 per student per year. National averages for Job Corps centers can vary significantly based on location, services offered, and student demographics. Generally, per-student costs can range from $8,000 to $15,000 or more annually. To provide a precise comparison, data on the center's enrollment capacity and actual student throughput is needed. Benchmarking against centers in similar regions or with comparable training programs would offer the most relevant comparison for assessing value for money.

What are the specific performance metrics and expected outcomes tied to this contract?

Performance metrics and expected outcomes are critical components of any government contract, ensuring accountability and measuring success. For this Job Corps center operations contract, key performance indicators (KPIs) would likely include metrics related to student enrollment, retention rates, completion of training programs, job placement rates post-graduation, and average starting wages of placed graduates. The contract document itself would detail these specific KPIs, along with the targets the contractor must achieve. Failure to meet these metrics could result in penalties, reduced payments, or even contract termination. The Department of Labor would monitor these outcomes to ensure the effective use of taxpayer funds and the program's success in preparing individuals for employment.

What is the track record of the contractor, Dynamic Educational Systems Inc., in managing federal contracts, particularly in education or workforce development?

Dynamic Educational Systems Inc. is the contractor awarded this $52.9 million contract. To assess their track record, a review of their past performance on federal contracts is necessary. This would involve examining contract databases (like FPDS or SAM.gov) for previous awards, their value, duration, and performance history. Specifically, looking for experience in operating Job Corps centers or similar workforce development programs is important. Key aspects to evaluate include on-time delivery, adherence to budget, quality of services, and any history of contract disputes, terminations, or performance issues. A positive track record with similar federal contracts would increase confidence in their ability to successfully manage this significant award, while a history of problems would raise concerns.

How does the 'full and open competition after exclusion of sources' procurement method impact cost and fairness compared to standard full and open competition?

The 'full and open competition after exclusion of sources' method is a variation of standard full and open competition. Initially, the solicitation is open to all responsible sources. However, specific sources are later excluded from consideration. This exclusion must be justified based on specific criteria outlined in federal acquisition regulations, such as national security concerns or specific technical requirements that only certain vendors can meet. While it still aims for broad competition initially, the exclusion can potentially limit the number of bidders and, consequently, the range of price discovery. If the exclusions are well-justified and the remaining competition is robust (as indicated by 9 bidders here), it can still lead to fair pricing. However, if exclusions are arbitrary, it could stifle competition and potentially lead to higher costs for taxpayers.

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: 1630J5-20-R-00001

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8433 N BLACK CANYON HWY STE 184, PHOENIX, AZ, 85021

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

Financial Breakdown

Contract Ceiling: $64,453,194

Exercised Options: $64,256,869

Current Obligation: $52,986,147

Actual Outlays: $48,405,545

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline