Department of Labor awards $40.8M contract to INSIGHTS TRAINING GROUP for Job Corps Center services

Contract Overview

Contract Amount: $40,843,642 ($40.8M)

Contractor: Insights Training Group, LLC

Awarding Agency: Department of Labor

Start Date: 2022-02-04

End Date: 2026-06-30

Contract Duration: 1,607 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CINCINNATI JOB CORPS CENTER

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45214

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $40.8 million to INSIGHTS TRAINING GROUP, LLC for work described as: CINCINNATI JOB CORPS CENTER Key points: 1. The contract value of $40.8M over approximately 4 years represents a significant investment in vocational training. 2. INSIGHTS TRAINING GROUP, LLC is the sole awardee, raising questions about the extent of competition. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a complex procurement process. 4. The 'Other Technical and Trade Schools' sector is crucial for workforce development.

Value Assessment

Rating: fair

The contract's fixed price structure aims to control costs. Benchmarking against similar Job Corps center contracts would be necessary to fully assess value, but the duration and scope suggest a moderate price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was open, specific sources were initially excluded, potentially impacting the breadth of bids received and the final price discovery.

Taxpayer Impact: Taxpayers are funding essential job training services. The effectiveness of the training and the efficiency of the contractor will determine the ultimate return on this investment.

Public Impact

Provides vocational training and support services to students at the Cincinnati Job Corps Center. Aims to equip individuals with skills for in-demand occupations. Supports the Department of Labor's mission to enhance workforce development. Potential impact on local employment rates and economic mobility for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited visibility into the 'exclusion of sources' rationale.
Potential for cost overruns if training outcomes are not met.
Dependence on a single contractor for critical services.

Positive Signals

Addresses a clear need for vocational training.
Utilizes a firm fixed-price contract to manage costs.
Long-term contract provides stability for service delivery.

Sector Analysis

The 'Other Technical and Trade Schools' sector is vital for addressing skills gaps. Spending in this area is often driven by government initiatives to boost employment and economic opportunity. Benchmarks vary widely based on program scope and student population.

Small Business Impact

The data does not indicate any specific set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The contract's duration and value warrant regular performance reviews by the Office of the Assistant Secretary for Administration and Management to ensure accountability and effective service delivery.

Related Government Programs

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

Risk Flags

Lack of transparency regarding source exclusion.
Potential for performance issues impacting student outcomes.
Reliance on a single entity for a significant service.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $40.8 million to INSIGHTS TRAINING GROUP, LLC. CINCINNATI JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is INSIGHTS TRAINING 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 $40.8 million.

What is the period of performance?

Start: 2022-02-04. End: 2026-06-30.

What was the specific rationale for excluding certain sources during the competition phase, and how did this impact the final contract price?

The rationale for excluding sources is not detailed in the provided data. Typically, exclusions might be based on specific technical capabilities, past performance, or unique requirements. Understanding this would clarify whether the exclusion limited competition and potentially inflated the price, or if it was a necessary step to ensure the best fit for the government's needs.

How will the effectiveness of the training programs be measured, and what are the key performance indicators (KPIs) to ensure taxpayer value?

Effectiveness is likely measured through student completion rates, job placement statistics, and post-placement wage levels. Key performance indicators should be clearly defined in the contract, allowing the Department of Labor to track the program's success in preparing students for employment and ensuring a return on the $40.8M investment.

What are the contingency plans if INSIGHTS TRAINING GROUP, LLC fails to meet performance standards or faces financial instability?

Contingency plans typically involve contract termination clauses, performance improvement notices, and the potential for the government to step in or re-compete the contract. The Department of Labor would have mechanisms to address contractor underperformance, ensuring continuity of services for Job Corps students and protecting taxpayer funds.

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-00009

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 327 N MAIN ST, MARION, VA, 24354

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $56,114,632

Exercised Options: $44,575,546

Current Obligation: $40,843,642

Actual Outlays: $37,165,073

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline