Distinction LLC awarded $24.76M for technical and trade school services in New Mexico

Contract Overview

Contract Amount: $24,758,068 ($24.8M)

Contractor: Distinction LLC

Awarding Agency: Department of Labor

Start Date: 2021-03-01

End Date: 2024-02-28

Contract Duration: 1,094 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ROSWELL AWARD 2020

Place of Performance

Location: ROSWELL, CHAVES County, NEW MEXICO, 88202

State: New Mexico Government Spending

Plain-Language Summary

Department of Labor obligated $24.8 million to DISTINCTION LLC for work described as: ROSWELL AWARD 2020 Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive pricing environment. 3. Potential risks include contractor performance and adherence to educational standards. 4. This contract supports vocational training and workforce development in the region. 5. The services fall within the broader category of educational support and technical training. 6. The contract's fixed-price nature helps control costs for the government.

Value Assessment

Rating: good

The contract value of approximately $24.76 million over three years for technical and trade school services appears to be within a reasonable range for this type of support. Benchmarking against similar contracts for vocational training or educational services would provide a more precise assessment, but the fixed-price structure suggests an effort to manage costs effectively. The absence of significant cost overruns in the provided data points to good financial stewardship.

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 multiple potential bidders were considered and allowed to compete. The presence of 5 bidders suggests a healthy level of competition, which typically drives down prices and encourages innovation. This competitive process is a positive sign for achieving value for taxpayer money.

Taxpayer Impact: A competitive award process helps ensure that the government secures services at the best possible price, maximizing the value of taxpayer funds allocated to this contract.

Public Impact

The primary beneficiaries are students seeking technical and trade skills, enhancing their employability. Services delivered include vocational training and educational support, contributing to workforce development. The geographic impact is focused on New Mexico, potentially boosting the local economy through a skilled workforce. Workforce implications include the creation of training opportunities and the development of a more skilled labor pool for regional industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring the quality and relevance of the technical training provided to meet evolving industry needs.
Monitoring contractor performance to guarantee adherence to educational standards and delivery timelines.
Assessing the long-term impact of the training on student employment outcomes and career progression.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
The competitive award process suggests a strong market interest and potential for high-quality service delivery.
The contract duration allows for sustained program delivery and potential for long-term impact.

Sector Analysis

This contract falls within the broader education and training sector, specifically focusing on vocational and technical skills development. The market for such services is driven by industry demand for skilled labor and government initiatives to support workforce readiness. Comparable spending benchmarks would involve analyzing other federal contracts for similar educational services, particularly those aimed at workforce development or specific trade certifications.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this award and their potential impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms would typically involve the Department of Labor's Office of the Assistant Secretary for Administration and Management, ensuring compliance with contract terms and performance standards. Accountability measures are embedded in the contract's performance requirements and payment schedules. Transparency is generally facilitated through contract databases and reporting requirements, though specific oversight details for this contract would require further investigation.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
Department of Labor Training and Employment Guidance Letters (TEGLs)
Federal Student Aid programs
Vocational Rehabilitation Services

Risk Flags

Potential for skills gap if training is not aligned with market demand.
Contractor performance risk: ensuring quality and timely delivery of services.
Measuring long-term employment outcomes for program participants.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.8 million to DISTINCTION LLC. ROSWELL AWARD 2020

Who is the contractor on this award?

The obligated recipient is DISTINCTION 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 $24.8 million.

What is the period of performance?

Start: 2021-03-01. End: 2024-02-28.

What is the track record of Distinction LLC in delivering similar technical and trade school services?

Information regarding Distinction LLC's specific track record in delivering technical and trade school services under federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with previous government engagements. Understanding their experience with similar scopes of work, student populations, and educational outcomes is crucial for evaluating their capability to fulfill the current contract requirements effectively. Without this historical data, it is difficult to definitively assess their reliability and expertise in this domain.

How does the awarded amount compare to the estimated value or market rates for similar services?

The awarded amount of approximately $24.76 million over three years for technical and trade school services in New Mexico is a significant investment. To benchmark this value, one would need to compare it against the average cost of similar training programs offered by other institutions, both public and private, in the region and nationally. Factors such as the specific trades or skills being taught, the duration and intensity of the programs, and the number of students served would influence these comparisons. The 'full and open competition' aspect suggests that the price achieved was competitive, but a detailed market analysis of per-student costs or per-training-hour rates would provide a more robust value assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential underperformance by the contractor in delivering quality training, failure to meet enrollment or completion targets, and the risk that the skills taught may not align with current labor market demands. Mitigation strategies typically involve robust contract oversight, performance metrics tied to payment, regular reporting requirements, and potentially site visits or audits by the contracting agency. The firm fixed-price nature of the contract also shifts some financial risk to the contractor. Ensuring the curriculum remains relevant and that students achieve successful employment outcomes are ongoing challenges that require proactive management.

How effective has this contract been in achieving its stated goals of workforce development?

The effectiveness of this contract in achieving workforce development goals can be measured by metrics such as student completion rates, post-graduation employment rates, average starting salaries of graduates, and employer satisfaction with the skills of the trained workforce. The provided data does not include these outcome-based metrics. A thorough evaluation would require analyzing data collected over the contract's performance period, potentially through follow-up surveys with graduates and employers, and comparing these results against pre-defined program objectives and benchmarks. The contract's duration suggests an intent for sustained impact, but its ultimate success hinges on these measurable outcomes.

What are the historical spending patterns for similar technical and trade school services by the Department of Labor?

Analyzing historical spending patterns for similar services by the Department of Labor (DOL) would involve examining contract databases for previous awards related to vocational training, technical education, and workforce development programs. This would reveal trends in contract values, durations, types of services procured, and the contractors frequently engaged. Understanding DOL's historical investment in this area can provide context for the current $24.76 million award, indicating whether this represents a typical, increased, or decreased level of spending for such services. It also helps identify any shifts in procurement strategies or focus areas over time.

What is the geographic concentration of this contract's services, and does it align with DOL's strategic priorities?

This contract is specifically awarded for services to be delivered in New Mexico (ST: NM, SN: NEW MEXICO). The geographic concentration is therefore limited to this state. Whether this aligns with DOL's strategic priorities would depend on the department's current focus on workforce development initiatives in specific regions, including New Mexico. DOL often targets areas with high unemployment or specific industry needs. The award suggests that New Mexico has been identified as a priority area for the type of technical and trade skills training being procured under this contract.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630J4-20-R-0002

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 402 E STARLING ST, GREENVILLE, MS, 38701

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

Financial Breakdown

Contract Ceiling: $43,868,429

Exercised Options: $30,404,864

Current Obligation: $24,758,068

Actual Outlays: $24,532,543

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,313,233

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline