Department of Labor awards $38.7M contract for operation of Quentin Burdick JCC to Human Learning Systems LLC

Contract Overview

Contract Amount: $38,717,026 ($38.7M)

Contractor: Human Learning Systems LLC

Awarding Agency: Department of Labor

Start Date: 2021-11-01

End Date: 2026-11-30

Contract Duration: 1,855 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF QUENTIN BURDICK JCC

Place of Performance

Location: MINOT, WARD County, NORTH DAKOTA, 58703

State: North Dakota Government Spending

Plain-Language Summary

Department of Labor obligated $38.7 million to HUMAN LEARNING SYSTEMS LLC for work described as: OPERATION OF QUENTIN BURDICK JCC Key points: 1. Contract value of $38.7 million over approximately five years suggests a significant investment in facility operations. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The North Dakota location may indicate a focus on regional service delivery or specific facility needs. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services, which may be a component of the JCC operations. 6. The duration of the contract (over 1800 days) suggests a need for stable, long-term service provision.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed information on the specific services provided by the Quentin Burdick JCC. However, a $38.7 million award over five years averages to approximately $7.74 million annually. This figure needs to be compared against the operational costs of similar correctional facilities or educational centers managed by government entities. Without specific performance metrics or a breakdown of costs associated with staffing, maintenance, and programming, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost certainty, but the overall value hinges on the efficiency and effectiveness of the contractor's service delivery.

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,' which implies that the initial solicitation was open to all responsible sources, but specific sources may have been excluded later in the process for documented reasons. The presence of 10 bidders indicates a reasonably competitive environment. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that multiple entities vied for this contract suggests that the market for operating such facilities is active.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely drove down the final contract price through bidding. A robust competition helps ensure that the government is not overpaying for the services rendered.

Public Impact

The primary beneficiaries are individuals within the correctional system who will utilize the services provided at the Quentin Burdick JCC. The contract ensures the continued operation and provision of essential services, potentially including educational, vocational, and rehabilitative programs. The geographic impact is localized to North Dakota, where the Quentin Burdick JCC is situated. The contract supports jobs related to facility management, education, and support services, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'operation' is not clearly delineated.
Reliance on a single contractor for critical facility operations could pose a risk if performance falters.
Ensuring consistent quality of services across the contract duration requires diligent oversight.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Fixed-price contract type provides cost predictability for the government.
Contract duration of over five years allows for stable service provision and potential for economies of scale.

Sector Analysis

The contract falls within the broader 'Other Technical and Trade Schools' sector (NAICS 611519), which encompasses institutions offering vocational, technical, and trade instruction. However, the primary function appears to be the 'OPERATION OF QUENTIN BURDICK JCC,' suggesting a correctional facility context. This implies a blend of facility management and potentially educational or rehabilitative services tailored for an incarcerated population. Comparable spending benchmarks would ideally be drawn from contracts for operating correctional facilities or detention centers, rather than solely educational institutions, to accurately assess value.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. The contract's value and nature suggest it may not have been specifically set aside for small businesses, though subcontracting opportunities could exist. Further analysis would be needed to determine if small businesses are involved in fulfilling parts of this contract or if there are specific goals for their participation.

Oversight & Accountability

Oversight of this contract would likely fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures would be defined in the contract's terms and conditions, including performance standards, reporting requirements, and potential remedies for non-performance. Transparency is generally facilitated through contract award databases, but detailed operational oversight mechanisms are typically internal to the contracting agency.

Related Government Programs

Federal Bureau of Prisons Operations
Department of Justice - Juvenile Justice Programs
Department of Education - Vocational Training Programs
State and Local Correctional Facility Management Contracts

Risk Flags

Potential for performance issues in facility operation.
Need for clear definition of services under 'operation'.
Reliance on contractor for critical public services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $38.7 million to HUMAN LEARNING SYSTEMS LLC. OPERATION OF QUENTIN BURDICK JCC

Who is the contractor on this award?

The obligated recipient is HUMAN LEARNING SYSTEMS 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 $38.7 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-11-30.

What specific services are included under the 'OPERATION OF QUENTIN BURDICK JCC'?

The provided data indicates the contract is for the 'OPERATION OF QUENTIN BURDICK JCC' and falls under NAICS code 611519 (Other Technical and Trade Schools). While the NAICS code suggests educational or vocational training services, the term 'JCC' typically refers to a Juvenile Community Correctional center or a similar facility. Therefore, the services likely encompass a broad range of activities including facility management (security, maintenance, housing), staffing, provision of meals, healthcare access, and potentially educational, vocational, and rehabilitative programs designed for the resident population. A detailed statement of work (SOW) within the contract documents would specify the exact scope and deliverables.

How does the $38.7 million contract value compare to similar correctional facility operations?

Comparing the $38.7 million contract value requires context regarding the size, capacity, and specific services offered by the Quentin Burdick JCC. Annualized, this contract represents approximately $7.74 million per year. Costs for operating correctional facilities can vary significantly based on location, security levels, inmate population, and the extent of rehabilitative or educational programs offered. For instance, large federal prisons can cost hundreds of millions annually, while smaller, specialized facilities might operate at lower figures. Without specific benchmarks for comparable juvenile correctional centers or similar facilities in North Dakota or the surrounding region, it's difficult to definitively state if this value is high or low. However, the number of bidders (10) suggests market interest, which can be a positive indicator.

What are the potential risks associated with Human Learning Systems LLC operating this facility?

Potential risks associated with Human Learning Systems LLC operating the Quentin Burdick JCC include performance failures in delivering contracted services, such as inadequate facility maintenance, insufficient staffing leading to security lapses, or failure to provide promised educational/rehabilitative programs. There's also a risk of cost overruns if the fixed-price contract doesn't adequately account for unforeseen operational challenges, although the contractor typically bears this risk. Reputational risk could arise if the facility experiences significant incidents or negative press. Furthermore, the contractor's track record in managing similar facilities, their financial stability, and their ability to comply with all relevant regulations and ethical standards are critical factors in mitigating these risks.

What is the historical spending pattern for operating the Quentin Burdick JCC?

The provided data only details the current contract awarded on November 1, 2021, with an end date of November 30, 2026. It does not offer historical spending data for the Quentin Burdick JCC prior to this award. To understand historical spending patterns, one would need to access previous contract awards for this facility, potentially from the Department of Labor or other relevant agencies if the facility's management has changed hands. Analyzing past contract values, durations, and the number of bidders over time would reveal trends in operational costs, competition levels, and contractor performance.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad market access with specific procurement needs. Initially, it allows all responsible sources to compete, which generally fosters price competition and innovation, benefiting taxpayers. The 'exclusion of sources' clause implies that after an initial open period, certain potential bidders might be disqualified based on specific criteria outlined in the solicitation (e.g., past performance, technical capabilities, security clearances). While this exclusion can streamline the process and ensure only qualified vendors proceed, it carries a risk if the exclusion criteria are overly restrictive or not well-justified, potentially limiting competition and leading to higher prices. The effectiveness hinges on the transparency and necessity of the exclusions.

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-21-R-00002

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2445 CANDLER RD, DECATUR, GA, 30032

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $47,009,979

Exercised Options: $46,959,979

Current Obligation: $38,717,026

Actual Outlays: $34,614,134

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline