Department of Labor awards $62.5M contract to Management & Training Corporation for Hawaii Job Corps Center operations

Contract Overview

Contract Amount: $62,507,467 ($62.5M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2022-05-01

End Date: 2026-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $42.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

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 HAWAII JOB CORPS CENTER WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: WAIMANALO, HONOLULU County, HAWAII, 96795

State: Hawaii Government Spending

Plain-Language Summary

Department of Labor obligated $62.5 million to MANAGEMENT & TRAINING CORPORATION 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 HAWAII JOB CORPS CENTER WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. The contract focuses on vocational training for youth aged 16-24, including outreach, admissions, and career transition services. 2. Management & Training Corporation is the incumbent contractor, suggesting potential for continuity but also a need to assess ongoing value. 3. The contract is a Firm Fixed Price type, which shifts cost risk to the contractor. 4. The spending is allocated to 'Other Technical and Trade Schools' (NAICS 611519), a sector focused on workforce development.

Value Assessment

Rating: fair

The contract value of $62.5M over four years averages $15.6M annually. Benchmarking against similar vocational training contracts is difficult without more specific service details, but the scale appears substantial for a single center.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are supporting a program aimed at youth workforce development, with the potential for long-term economic benefits through improved employment outcomes.

Public Impact

Provides essential job training and career services to young adults in Hawaii. Aims to improve employment rates and earning potential for participants. Supports the local economy through job creation and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if performance is merely adequate.
Ensuring effective outreach and transition services for all eligible youth.
Measuring long-term success rates of program graduates in the job market.

Positive Signals

Full and open competition promotes value.
Firm Fixed Price contract shifts cost risk.
Focus on youth development has positive societal impact.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' sector, which is crucial for workforce development. Annual spending in this sector can vary significantly based on federal priorities and economic conditions, but this contract represents a notable investment in Hawaii's youth.

Small Business Impact

The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation would be needed to determine if small businesses are involved in delivering services.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Standard oversight mechanisms should be in place to monitor performance, financial management, and compliance with contract terms.

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 specific performance metrics beyond general description.
No indication of small business participation.
Potential for incumbent contractor complacency.
Need for detailed cost-per-participant analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $62.5 million to MANAGEMENT & TRAINING CORPORATION. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES OPERATION OF THE HAWAII JOB CORPS CENTER WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $62.5 million.

What is the period of performance?

Start: 2022-05-01. End: 2026-04-30.

What is the historical performance of Management & Training Corporation in operating Job Corps centers, and how does it compare to industry benchmarks?

Assessing MTC's historical performance requires reviewing past contract performance reports, any documented issues, and success metrics from their previous Job Corps operations. Comparing this to industry benchmarks for vocational training programs, focusing on graduation rates, job placement success, and participant satisfaction, would provide a clearer picture of their effectiveness and value for money.

How does the cost per participant compare to other Job Corps centers or similar vocational training programs nationwide?

To determine the cost per participant, we need the total number of participants served annually or over the contract period. Comparing this figure to national averages for Job Corps centers and other government-funded vocational training programs would reveal if the Hawaii center is cost-efficient or if there are opportunities for savings. This analysis should account for regional cost-of-living differences.

What are the key performance indicators (KPIs) for this contract, and how will success be measured beyond job placement rates?

Success measurement should extend beyond simple job placement. KPIs could include participant skill attainment, retention in training, post-placement job retention duration, and employer satisfaction with graduates. Tracking these diverse metrics provides a more comprehensive understanding of the program's effectiveness in preparing youth for sustainable careers and contributing to their long-term economic well-being.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PL DR STE 100, CENTERVILLE, UT, 84014

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $82,062,281

Exercised Options: $65,129,080

Current Obligation: $62,507,467

Actual Outlays: $55,246,644

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $653,010

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline