Department of Labor awards $59.6M contract for Job Corps center operations in Arizona

Contract Overview

Contract Amount: $59,576,941 ($59.6M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2021-03-01

End Date: 2026-09-30

Contract Duration: 2,039 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT IS FOR THE OPERATION OF THE PHOENIX JOB CORPS CENTER AND PROVISION OF OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85004

State: Arizona Government Spending

Plain-Language Summary

Department of Labor obligated $59.6 million to ADAMS AND ASSOCIATES INC for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT IS FOR THE OPERATION OF THE PHOENIX JOB CORPS CENTER AND PROVISION OF OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. Contract focuses on vocational training for youth aged 16-24. 2. Operates the Phoenix Job Corps Center, including outreach and career transition. 3. Awarded through full and open competition, indicating broad market engagement. 4. Firm-fixed-price contract type suggests predictable costs for the government. 5. Contract duration of approximately 5.5 years provides long-term service stability. 6. The contract value represents a significant investment in youth workforce development.

Value Assessment

Rating: good

The contract value of $59.6 million over approximately 5.5 years averages to about $10.8 million annually. Benchmarking against similar Job Corps center operations contracts is necessary for a precise value-for-money assessment. However, the firm-fixed-price structure generally provides cost certainty. The number of bidders (12) suggests a competitive environment that likely influenced pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 12 bids received. This indicates a robust bidding process where multiple qualified contractors had the opportunity to compete for the work. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified providers, benefiting the government.

Taxpayer Impact: The full and open competition with 12 bidders suggests that taxpayer dollars are likely being used efficiently, as the competitive process should drive down costs and ensure the best value is obtained for the services provided.

Public Impact

Benefits young individuals aged 16-24 by providing vocational training and career services. Delivers essential services for the operation of the Phoenix Job Corps Center. Geographic impact is focused on Arizona, specifically serving the Phoenix area. Workforce implications include training and preparing a segment of the future workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly, despite fixed-price structure.
Ensuring consistent quality of training and placement services across the contract duration.
Monitoring contractor performance to ensure adherence to program goals and student outcomes.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Long contract duration allows for stable service delivery and program continuity.
Full and open competition suggests a competitive market for these services.

Sector Analysis

The Job Corps program falls within the broader education and workforce development sector, specifically focusing on vocational training. This contract supports the government's investment in human capital development. The market for operating such centers involves specialized educational service providers. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar government-funded youth training initiatives.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit small business set-aside mentioned, the presence of 12 bidders suggests that small businesses may have participated either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation and subcontracting opportunities within this award.

Oversight & Accountability

Oversight is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures would include performance metrics related to student enrollment, training completion, job placement rates, and cost management. Transparency is generally facilitated through contract award databases and reporting requirements.

Related Government Programs

Job Corps National Program
Department of Labor Workforce Development Programs
Youth Training and Employment Programs

Risk Flags

Performance Risk: Ensuring consistent quality and outcomes.
Cost Management: Monitoring contractor's efficiency under fixed-price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $59.6 million to ADAMS AND ASSOCIATES INC. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT IS FOR THE OPERATION OF THE PHOENIX JOB CORPS CENTER AND PROVISION OF OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES 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 $59.6 million.

What is the period of performance?

Start: 2021-03-01. End: 2026-09-30.

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

Historical spending data for the Phoenix Job Corps Center specifically is not directly available in the provided data. However, the current award of $59.6 million over approximately 5.5 years suggests an average annual expenditure of around $10.8 million. To understand historical patterns, one would need to examine previous contracts for this specific center, looking at their values, durations, and any modifications. Comparing this new award to previous funding levels would reveal trends in investment and potential changes in service scope or cost over time. It's also important to consider the broader trend of federal funding for Job Corps nationally when assessing historical context.

How does the cost per student compare to other Job Corps centers?

The provided data does not include the number of students served by the Phoenix Job Corps Center under this contract, which prevents a direct calculation of cost per student. To perform this comparison, we would need to know the projected or actual number of students enrolled and completing training. Once that figure is available, it could be divided into the total contract value (or annual value) to derive a cost per student. This figure could then be benchmarked against average cost per student data from other Job Corps centers, which is often available through Department of Labor reports or program evaluations. Variations in cost per student can be influenced by factors such as the intensity of training programs, support services offered, and local operating costs.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators (KPIs) for this contract are not explicitly detailed in the provided summary data. However, for Job Corps center operations, typical KPIs usually revolve around student recruitment and enrollment, training completion rates, academic achievement, attainment of industry-recognized credentials, job placement rates (both in-field and at a living wage), and student retention. The contractor, Adams and Associates Inc., would be expected to meet specific targets for these metrics as outlined in the contract's Statement of Work (SOW). Performance would likely be monitored by the Department of Labor through regular reporting and site visits to ensure program effectiveness and accountability.

What is the track record of Adams and Associates Inc. in operating Job Corps centers?

Adams and Associates Inc. has a history of operating Job Corps centers. While the provided data confirms they were awarded this contract for the Phoenix center, a comprehensive assessment of their track record would require reviewing their performance on previous and current contracts. This includes examining contract histories for on-time delivery, quality of services, compliance with regulations, student outcomes (graduation rates, job placement), and any past performance issues or awards. Information from sources like the Federal Procurement Data System (FPDS) or agency performance evaluations could provide further insights into their reliability and effectiveness as a contractor in the Job Corps program.

What are the risks associated with a firm-fixed-price contract for vocational training services?

The primary risk associated with a firm-fixed-price (FFP) contract for vocational training services like Job Corps is that the contractor, Adams and Associates Inc., bears the risk of cost overruns. If operating costs (e.g., instructor salaries, facility maintenance, materials) increase beyond what was anticipated during the bidding process, the contractor's profit margin will decrease, potentially impacting service quality if cost-cutting measures are implemented. Conversely, the government benefits from cost certainty. Risks for the government under an FFP contract are generally lower regarding cost, but performance risk remains – ensuring the contractor delivers the required quality and quantity of services effectively to meet student needs and program goals.

How does this contract fit into the Department of Labor's broader workforce development strategy?

This contract directly supports the Department of Labor's (DOL) mission to foster workforce development by providing vocational training and career services to young adults. The Job Corps program specifically targets disadvantaged youth, aiming to equip them with the skills needed for successful employment in today's economy. By funding the operation of centers like the Phoenix Job Corps Center, the DOL invests in human capital, addressing potential skills gaps and promoting economic opportunity for participants. This aligns with broader DOL strategies focused on preparing individuals for in-demand jobs, reducing unemployment, and enhancing the overall competitiveness of the U.S. workforce.

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: 1630J6-20-R-00001

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $67,939,039

Exercised Options: $67,939,039

Current Obligation: $59,576,941

Actual Outlays: $54,350,680

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $1,851,374

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline