STRATEGIX MANAGEMENT LLC awarded $44.6M contract for Job Corps Center services, highlighting a competitive procurement

Contract Overview

Contract Amount: $44,645,488 ($44.6M)

Contractor: Strategix Management LLC

Awarding Agency: Department of Labor

Start Date: 2021-04-15

End Date: 2026-05-31

Contract Duration: 1,872 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JOLIET JOB CORPS CENTER WITH OACTS

Place of Performance

Location: JOLIET, WILL County, ILLINOIS, 60433

State: Illinois Government Spending

Plain-Language Summary

Department of Labor obligated $44.6 million to STRATEGIX MANAGEMENT LLC for work described as: JOLIET JOB CORPS CENTER WITH OACTS Key points: 1. The contract value of $44.6 million over its period of performance suggests a significant investment in vocational training. 2. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates a competitive process with initial restrictions. 3. The definitive contract type with a firm fixed price suggests a clear scope and predictable cost structure. 4. The duration of 1872 days (approximately 5 years) points to a long-term need for these services. 5. The award to STRATEGIX MANAGEMENT LLC, with no prior contract data provided, necessitates further investigation into their performance. 6. The North American Industry Classification System (NAICS) code 611519 for 'Other Technical and Trade Schools' places this contract within the education and training sector.

Value Assessment

Rating: fair

Benchmarking the value of this $44.6 million contract is challenging without comparable data for similar Job Corps Center operations or specific service components. The firm fixed-price structure provides cost certainty, but the overall value for money depends on the quality and effectiveness of the training delivered. Further analysis would require understanding the per-student cost and placement rates compared to national averages.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be broad, there were initial limitations or specific criteria that excluded certain potential bidders. The presence of 4 bids suggests a moderate level of competition, which is generally positive for price discovery but may not represent the full market potential.

Taxpayer Impact: A competitive process, even with initial exclusions, is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and service proposals, potentially leading to cost savings.

Public Impact

The primary beneficiaries are students enrolled in the Joliet Job Corps Center, who will receive vocational training and support services. The services delivered are expected to include technical and trade education, career counseling, and job placement assistance. The geographic impact is focused on Joliet, Illinois, and surrounding areas, providing local workforce development. The contract has implications for the local workforce, potentially creating jobs for instructors, support staff, and administrative personnel at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of historical performance data for STRATEGIX MANAGEMENT LLC on similar government contracts.
The 'exclusion of sources' in the competition method warrants understanding the rationale to ensure fairness and maximize competition.
The specific outcomes and effectiveness of the training programs are not detailed, posing a risk to program success.
The contract value is substantial, increasing the financial risk if performance issues arise.

Positive Signals

The contract was awarded through a competitive process, indicating that multiple entities vied for the opportunity.
The firm fixed-price contract type provides cost predictability for the government.
The long duration suggests a stable, ongoing need for the services provided.
The contract supports a vital federal program (Job Corps) aimed at workforce development.

Sector Analysis

This contract falls within the broader education and training sector, specifically focusing on vocational and technical skills development. The Job Corps program is a significant federal initiative aimed at preparing young people for careers. Comparable spending benchmarks would involve looking at other Job Corps center contracts or large-scale vocational training programs administered by federal agencies. The market for such services is competitive, involving educational institutions, non-profit organizations, and private companies specializing in workforce development.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside provisions. However, the prime contractor, STRATEGIX MANAGEMENT LLC, may still choose to engage small businesses as subcontractors to fulfill certain aspects of the contract, which would contribute to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Job Corps Program
Department of Labor Training Programs
Vocational Education Contracts
Federal Workforce Development Initiatives

Risk Flags

Lack of historical performance data for the contractor.
Potential for limited competition due to 'exclusion of sources'.
Dependence on contractor's ability to deliver effective training and job placement.
Complexity of managing a large-scale vocational training center.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $44.6 million to STRATEGIX MANAGEMENT LLC. JOLIET JOB CORPS CENTER WITH OACTS

Who is the contractor on this award?

The obligated recipient is STRATEGIX MANAGEMENT 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 $44.6 million.

What is the period of performance?

Start: 2021-04-15. End: 2026-05-31.

What is the track record of STRATEGIX MANAGEMENT LLC in performing similar government contracts, particularly those related to educational or training services?

Information regarding STRATEGIX MANAGEMENT LLC's prior performance on government contracts, especially those of a similar scope and value to the Joliet Job Corps Center award, is not readily available in the provided data. A comprehensive assessment would require accessing historical contract databases (e.g., SAM.gov, FPDS) to review past performance evaluations, any reported issues, and their experience with federal training programs. Without this historical context, it is difficult to gauge their reliability and capability to successfully execute this $44.6 million contract. Further due diligence is recommended to understand their operational capacity and past successes or failures in similar environments.

How does the awarded amount of $44.6 million compare to the typical cost of operating a Job Corps center of similar size and scope?

To benchmark the $44.6 million award, one would need to compare it against the average operating costs of other Job Corps centers, considering factors like student capacity, geographic location, and the specific mix of vocational programs offered. The provided data does not include this comparative information. However, the duration of the contract (1872 days, approximately 5 years) suggests this is a substantial, long-term commitment. A detailed analysis would involve calculating the average annual cost ($44.6M / 5 years ≈ $8.92M/year) and comparing it to publicly available data on Job Corps center budgets or cost-per-student metrics from the Department of Labor or independent research organizations. This would help determine if the pricing is within a reasonable range for the services provided.

What are the specific performance metrics and expected outcomes for the services provided under this contract?

The provided data does not detail the specific performance metrics or expected outcomes for the services rendered by STRATEGIX MANAGEMENT LLC at the Joliet Job Corps Center. Typically, such contracts include Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) related to student enrollment, completion rates, job placement success, and employer satisfaction. Understanding these metrics is crucial for assessing the contractor's value for money and the overall effectiveness of the Job Corps program. Without this information, it is challenging to evaluate whether the $44.6 million investment is yielding the desired results in terms of workforce readiness and career success for the students.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open to all qualified sources, there were initial restrictions or specific criteria that led to the exclusion of certain potential bidders from the outset. This could be due to specific technical requirements, past performance considerations, or other pre-defined conditions. The fact that there were 4 bids suggests that despite these exclusions, a reasonable number of offerors still participated. This method aims to balance broad competition with ensuring that only suitable candidates are considered, potentially streamlining the process but also raising questions about whether the exclusion limited the pool of potential savings for the government.

Are there any known risks associated with STRATEGIX MANAGEMENT LLC or the nature of the services provided that could impact contract performance?

Based on the limited data, a primary risk is the lack of readily available historical performance information for STRATEGIX MANAGEMENT LLC on similar government contracts. This makes it difficult to assess their past reliability and capability. Additionally, the nature of operating a Job Corps center involves managing complex educational programs, student support services, and ensuring successful job placements, all of which carry inherent operational risks. Factors such as student retention, curriculum effectiveness, and economic conditions affecting job markets can impact outcomes. The substantial contract value also presents a financial risk if performance issues lead to contract disputes or termination.

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-00007

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 L ST NW STE 400, WASHINGTON, DC, 20037

Business Categories: 8(a) Program Participant, 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: $55,034,670

Exercised Options: $54,862,132

Current Obligation: $44,645,488

Actual Outlays: $39,917,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline