Department of Labor awards $65.6M contract for Job Corps center operations, with a 5-year term

Contract Overview

Contract Amount: $65,603,909 ($65.6M)

Contractor: THE Bizzell Group LLC

Awarding Agency: Department of Labor

Start Date: 2021-02-15

End Date: 2026-09-30

Contract Duration: 2,053 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

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 PROVIDES OPERATION OF THE LONG BEACH JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90810

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $65.6 million to THE BIZZELL GROUP LLC for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES OPERATION OF THE LONG BEACH JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. The contract focuses on operating a Job Corps center, including crucial outreach, admissions, and career transition services. 2. The contract's duration of over 5 years suggests a need for stable, long-term service provision. 3. The award was made under a full and open competition, indicating a robust bidding process. 4. The contract type is Firm Fixed Price, which shifts performance risk to the contractor. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized vocational training services. 6. The contractor, The Bizzell Group LLC, is responsible for delivering these essential youth development services.

Value Assessment

Rating: good

The contract's value of approximately $65.6 million over five years for operating a Job Corps center appears reasonable given the scope of services. Benchmarking against similar Job Corps center contracts would provide a more precise value-for-money assessment. The Firm Fixed Price contract type suggests that the contractor bears the primary financial risk, which can incentivize efficiency. However, without detailed performance metrics and cost breakdowns, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. The presence of six bids suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The competitive nature of the procurement process is a positive indicator for price discovery and ensuring that taxpayer funds are used efficiently.

Taxpayer Impact: A competitive bidding process helps ensure that the Department of Labor secures the best possible services at a fair price, maximizing the value of taxpayer investments in youth vocational training.

Public Impact

Youth aged 16-24 seeking vocational training and career development services benefit directly from the operation of the Job Corps center. The contract delivers essential services including outreach, admissions, and career transition support, aiding participants in securing employment. The geographic impact is centered around the Long Beach Job Corps Center in California, serving the local youth population. The contract supports a workforce involved in education, training, and social services, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional services are required beyond the initial contract terms.
Ensuring consistent quality of training and support services across all aspects of the contract.
Monitoring contractor performance to ensure adherence to program goals and participant success metrics.

Positive Signals

The use of a Firm Fixed Price contract shifts risk to the contractor, encouraging cost control.
Full and open competition suggests a strong market response and potential for competitive pricing.
The long contract duration provides stability for program operations and participant services.

Sector Analysis

The vocational training and education sector is critical for workforce development, providing specialized skills to individuals seeking employment. Job Corps is a significant federal program within this sector, aimed at at-risk youth. The market for operating such centers involves educational institutions, non-profits, and private companies with expertise in training and social services. This contract represents a substantial investment in human capital development within the broader education and workforce services industry.

Small Business Impact

The data indicates that this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, the direct impact on small businesses through this specific award is likely limited unless they are subcontractors. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this 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. Mechanisms likely include regular performance reviews, financial audits, and adherence to contractual deliverables. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office within the Department of Labor would have jurisdiction for investigating any potential fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Youth Workforce Development Programs
Vocational Education and Training
Federal Job Training Contracts

Risk Flags

Contract Duration
Performance Risk
Service Quality Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $65.6 million to THE BIZZELL GROUP LLC. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES OPERATION OF THE LONG BEACH JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is THE BIZZELL GROUP 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 $65.6 million.

What is the period of performance?

Start: 2021-02-15. End: 2026-09-30.

What is the historical spending pattern for the operation of the Long Beach Job Corps Center?

Analyzing historical spending for the Long Beach Job Corps Center requires access to past contract awards and performance data. Without specific historical data for this center, it's difficult to provide a precise trend. However, Job Corps centers typically receive multi-year funding to ensure continuity of services. Spending patterns can fluctuate based on program adjustments, participant enrollment, and economic conditions. Generally, federal investments in workforce development programs like Job Corps are subject to annual appropriations and program evaluations, which can influence budget allocations over time. A review of previous contracts awarded for this center, if any, would reveal trends in cost per participant, operational expenses, and any significant changes in funding levels.

How does the per-unit cost of training under this contract compare to other Job Corps centers?

To compare the per-unit cost of training, we would need to define a standard unit, such as 'cost per participant served' or 'cost per training hour.' The total contract value is approximately $65.6 million over roughly 5.6 years (from Feb 2021 to Sep 2026), which translates to an average annual cost of about $11.7 million. The number of participants served annually by the Long Beach Job Corps Center is a critical factor for this comparison. If the center serves, for example, 1,000 students annually, the average annual cost per student would be around $11,700. Benchmarking this figure against the national average cost per participant for Job Corps centers, which can vary significantly by location and program intensity, would reveal if this contract represents a favorable or unfavorable value. Data from the Department of Labor's performance reports or independent analyses would be necessary for an accurate comparison.

What is the track record of The Bizzell Group LLC in managing federal contracts, particularly in education or workforce development?

The Bizzell Group LLC has a history of managing federal contracts, including those related to workforce development and education. A thorough review of their contract performance history with agencies like the Department of Labor, Department of Education, and others would be necessary for a comprehensive assessment. Key indicators to examine include past performance evaluations, any instances of contract disputes or terminations, and their success in meeting performance metrics on previous similar contracts. Information available through federal procurement databases (like SAM.gov or FPDS) can provide insights into their contract portfolio, award values, and agency relationships. Their experience in operating Job Corps centers or similar youth training programs would be particularly relevant to evaluating their capability for this specific contract.

What are the key performance indicators (KPIs) used to measure the success of this Job Corps center contract?

Key performance indicators for Job Corps center contracts typically focus on participant outcomes and operational efficiency. Common KPIs include: 1) Placement rates in unsubsidized employment, 2) Earnings of placed participants, 3) Retention rates within the program, 4) Completion rates of training programs, 5) Achievement of industry-recognized credentials, and 6) Participant satisfaction. The Department of Labor establishes specific targets for these metrics. The contractor, The Bizzell Group LLC, is expected to report regularly on these KPIs. Performance assessments would evaluate their ability to meet or exceed these targets, directly influencing future contract decisions and potentially impacting award fees or incentives.

What is the risk associated with the Firm Fixed Price (FFP) contract type for this service?

The Firm Fixed Price (FFP) contract type places the majority of the cost risk on the contractor, The Bizzell Group LLC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of unforeseen cost increases. For the government, this offers budget certainty and protection against cost overruns. However, the risk for the government lies in the contractor potentially cutting corners on quality or service delivery to maintain profitability if costs escalate unexpectedly. To mitigate this, robust performance monitoring and clear quality standards are essential. The government must ensure that the FFP structure does not incentivize the contractor to reduce the scope or quality of essential services provided to the youth participants.

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: 1605JW-20-R-00006

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12801 WILLOW MARSH LN, BOWIE, MD, 20720

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $86,226,286

Exercised Options: $86,176,257

Current Obligation: $65,603,909

Actual Outlays: $59,672,987

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline