Department of Labor awards $44.17M contract to Serrato Corporation for Flint Hills Job Corps Center services

Contract Overview

Contract Amount: $44,169,424 ($44.2M)

Contractor: Serrato Corporation

Awarding Agency: Department of Labor

Start Date: 2021-04-16

End Date: 2026-06-30

Contract Duration: 1,901 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FLINT HILLS JOB CORPS CENTER WITH OA/CTS

Place of Performance

Location: MANHATTAN, RILEY County, KANSAS, 66503

State: Kansas Government Spending

Plain-Language Summary

Department of Labor obligated $44.2 million to SERRATO CORPORATION for work described as: FLINT HILLS JOB CORPS CENTER WITH OA/CTS Key points: 1. The contract value of $44.17M over approximately 5 years represents a significant investment in vocational training. 2. Competition was full and open after exclusion of sources, suggesting a deliberate effort to ensure fair pricing. 3. The fixed-price contract type shifts risk to the contractor, potentially benefiting the government. 4. The sector appears to be education/training, with potential implications for workforce development.

Value Assessment

Rating: good

The contract value of $44.17M over 5 years averages to approximately $8.83M annually. Benchmarking against similar vocational training contracts would be necessary for a precise assessment, but this appears within a reasonable range for a large-scale job corps center.

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'. This method indicates that while the competition was broad, specific sources were initially excluded, potentially for specialized reasons. The pricing discovery should still be robust due to the open competition aspect.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and driving down costs.

Public Impact

Supports workforce development and job training for individuals in Kansas. Provides essential services for the Flint Hills Job Corps Center, impacting student outcomes. The contract's duration suggests a long-term commitment to the program and its beneficiaries. Potential for economic impact through job creation and skills enhancement in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition needs further clarification.
Lack of specific performance metrics in provided data.
Potential for cost overruns if scope significantly expands.

Positive Signals

Firm fixed-price contract type.
Long contract duration indicating stability.
Full and open competition methodology.

Sector Analysis

The sector is vocational training and education, specifically operating a Job Corps center. Spending in this area is crucial for workforce development. Benchmarks for similar large-scale training facilities would indicate if this $44M award is competitive.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Labor, through the Office of the Assistant Secretary for Administration and Management, is responsible for overseeing this contract. Robust oversight mechanisms are crucial to ensure service delivery and financial accountability.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for scope creep impacting cost.
Dependence on contractor's ability to deliver specialized training.
Risk associated with long-term contract performance.
Uncertainty regarding the specific reasons for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $44.2 million to SERRATO CORPORATION. FLINT HILLS JOB CORPS CENTER WITH OA/CTS

Who is the contractor on this award?

The obligated recipient is SERRATO CORPORATION.

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 $44.2 million.

What is the period of performance?

Start: 2021-04-16. End: 2026-06-30.

What specific services are included under this contract for the Flint Hills Job Corps Center?

The contract likely encompasses a broad range of operational and support services necessary for the functioning of the Job Corps center. This could include facility maintenance, student support services, training program administration, food services, transportation, and potentially curriculum support or development. A detailed statement of work would clarify the exact scope.

What were the reasons for excluding certain sources prior to the full and open competition?

The exclusion of sources prior to full and open competition suggests a potential need for specialized capabilities, prior performance history, or specific security requirements that only a subset of potential offerors could meet. Understanding these exclusions is key to assessing if the competition was truly as broad as possible given the requirements.

How does the performance of Serrato Corporation on similar contracts compare to this award?

Assessing Serrato Corporation's past performance on comparable contracts is vital. If they have a strong track record of delivering quality services on time and within budget for similar educational or training facilities, it increases confidence in their ability to meet the requirements of this $44.17M contract effectively.

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-00008

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 135 WEST COUNCIL ST, TUCSON, AZ, 85701

Business Categories: 8(a) Program Participant, Category Business, Community Developed Corporation Owned Firm, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $52,464,990

Exercised Options: $52,379,227

Current Obligation: $44,169,424

Actual Outlays: $40,817,501

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $808,446

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline