Department of Labor awards $97.9M contract to MINACT, INC for Job Corps Center operations in California

Contract Overview

Contract Amount: $97,907,611 ($97.9M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2020-12-14

End Date: 2026-03-31

Contract Duration: 1,933 days

Daily Burn Rate: $50.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

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 TREASURE ISLAND JOB CORPS CENTER INCLUDING OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94130

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $97.9 million to MINACT, 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 TREASURE ISLAND JOB CORPS CENTER INCLUDING OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. Contract focuses on vocational training for youth, aiming to improve workforce readiness. 2. Operations include outreach, admissions, and career transition services, indicating a comprehensive approach. 3. The contract duration of over 5 years suggests a long-term commitment to the program's success. 4. A firm fixed-price structure provides cost certainty for the government. 5. The award was made under full and open competition, suggesting a robust bidding process. 6. The specific NAICS code (611519) points to specialized technical and trade school services.

Value Assessment

Rating: good

The contract value of $97.9 million over approximately 5.3 years averages to about $18.5 million annually. Benchmarking this against other Job Corps center operations requires specific cost data per student or per center, which is not readily available in this summary. However, the fixed-price nature suggests the government has negotiated a set rate for the services, which can be advantageous if the contractor manages costs efficiently. The number of bidders (6) indicates a competitive environment that likely contributed to a reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, with six bids received. This indicates a healthy level of interest from potential contractors in operating the Job Corps center. The presence of multiple bidders generally supports price discovery and allows the government to select the offer that provides the best value, considering both cost and technical factors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to compete, potentially driving down costs and improving service quality through innovation and efficiency.

Public Impact

Young individuals aged 16-24 in California will benefit from vocational training and career development services. The Treasure Island Job Corps Center will provide essential services including outreach, admissions, and career transition support. The program aims to equip participants with job-ready skills, potentially leading to increased employment and earning potential. Geographic impact is focused on the Treasure Island area and surrounding communities in California. The contract supports a workforce development initiative, contributing to the local and regional economy through job placement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's operational efficiency is lower than anticipated, despite fixed-price structure.
Ensuring consistent quality of training and career services across the contract duration.
Measuring the long-term success and impact of the vocational training on participant employment outcomes.

Positive Signals

Firm fixed-price contract provides budget certainty for the Department of Labor.
Full and open competition suggests a competitive bidding process that likely secured a fair price.
Contract duration of over 5 years allows for program stability and long-term impact.
Focus on comprehensive services including outreach, admissions, and career transition.

Sector Analysis

The vocational training and education sector is a critical component of workforce development. This contract falls under the broader 'Other Technical and Trade Schools' category (NAICS 611519). The market for operating Job Corps centers involves specialized providers with experience in youth development, education, and job placement. Government spending in this area aims to address youth unemployment and skill gaps. Comparable spending benchmarks would involve analyzing the operational costs of similar Job Corps centers or other large-scale youth training programs.

Small Business Impact

The provided data indicates that small business participation (sb) is false for this contract. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary contractor, MINACT, INC, is likely a larger entity, and the contract was not specifically targeted towards small businesses. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this large federal contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management. Standard oversight mechanisms would include performance monitoring, financial audits, and compliance reviews to ensure the contractor is meeting the terms and conditions of the contract and delivering the required services effectively. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be proprietary.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Youth Training Programs
Vocational Rehabilitation Services

Risk Flags

Potential for performance variability based on contractor experience.
Need for robust oversight to ensure service quality and cost-effectiveness.
Long-term contract duration requires sustained monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $97.9 million to MINACT, 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 TREASURE ISLAND JOB CORPS CENTER INCLUDING OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is MINACT, 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 $97.9 million.

What is the period of performance?

Start: 2020-12-14. End: 2026-03-31.

What is the track record of MINACT, INC in managing federal contracts, particularly those related to education or workforce development?

MINACT, INC has a history of federal contracting, though specific details on their performance in education or workforce development programs require a deeper dive into contract databases like FPDS. A review of their past awards and performance evaluations (if publicly available) would indicate their experience level and success in similar ventures. It's important to assess if they have managed large-scale training centers or youth programs previously. Their ability to meet performance metrics, manage budgets, and comply with federal regulations on prior contracts would be key indicators of their suitability for this significant Job Corps center operation.

How does the annual cost of this contract compare to the average annual cost of operating other Job Corps centers nationwide?

The annual cost for this contract averages approximately $18.5 million ($97.9M / 5.3 years). To compare this effectively, we would need data on the average annual operating costs for other Job Corps centers. These costs can vary significantly based on location, size, student population, and the specific services offered. Without a benchmark of average cost per center or cost per student served across the Job Corps program, it is difficult to definitively state whether this contract represents high, low, or average spending. Accessing historical data from the Department of Labor or independent analyses of the Job Corps program would be necessary for a robust comparison.

What are the key performance indicators (KPIs) used to evaluate MINACT, INC's success in operating the Treasure Island Job Corps Center?

Key performance indicators for Job Corps center operations typically focus on student outcomes and program efficiency. These often include metrics such as student enrollment and retention rates, completion rates for vocational training programs, job placement rates post-completion, and average wages of placed graduates. Additionally, indicators related to the quality of training, student satisfaction, and adherence to budget and operational standards are likely included in the contract's performance work statement. The Department of Labor would monitor these KPIs to ensure MINACT, INC is meeting its contractual obligations and effectively serving the target youth population.

What is the historical spending trend for the operation of the Treasure Island Job Corps Center or similar facilities prior to this award?

Historical spending data for the Treasure Island Job Corps Center prior to this award would provide context for the current $97.9 million contract. Analyzing previous contracts for this specific center, or comparable centers if this is a new facility or consolidation, would reveal spending patterns, contract durations, and the contractors involved. Understanding if spending has increased, decreased, or remained stable over time can highlight trends in operational costs, program scope, or market competition. This information is crucial for assessing the long-term financial commitment and identifying any significant shifts in investment.

What specific vocational training programs are prioritized under this contract, and do they align with current labor market demands?

The contract specifies the operation of a Job Corps center, which implies a range of vocational training programs. However, the exact list of prioritized trades or skills is not detailed in the provided summary. To assess alignment with labor market demands, one would need to identify the specific training tracks offered by MINACT, INC at the Treasure Island center and compare them against current and projected workforce needs in California and nationally. Job Corps programs generally aim to align with in-demand occupations, but the effectiveness of this alignment can vary. Information on specific program offerings and their labor market relevance would be found in the contract's statement of work or related program documentation.

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-00002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Minact Inc

Address: 5220 KEELE ST, JACKSON, MS, 39206

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $113,357,817

Exercised Options: $113,357,817

Current Obligation: $97,907,611

Actual Outlays: $93,602,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline