Department of Labor Awards $54.6M Contract to Strategix Management LLC for Inland Empire Job Corps Center Operations

Contract Overview

Contract Amount: $54,596,468 ($54.6M)

Contractor: Strategix Management LLC

Awarding Agency: Department of Labor

Start Date: 2022-06-01

End Date: 2026-06-30

Contract Duration: 1,490 days

Daily Burn Rate: $36.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Other

Official Description: OPERATION OF THE THE INLAND EMPIRE JOB CORPS CENTER

Place of Performance

Location: SAN BERNARDINO, SAN BERNARDINO County, CALIFORNIA, 92407

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $54.6 million to STRATEGIX MANAGEMENT LLC for work described as: OPERATION OF THE THE INLAND EMPIRE JOB CORPS CENTER Key points: 1. The contract focuses on operating a Job Corps center, a critical service for workforce development. 2. Strategix Management LLC is the sole awardee under a full and open competition after exclusion of sources. 3. The fixed-price level-of-effort contract structure aims to control costs for defined service levels. 4. The duration of the contract extends over four years, indicating a significant, long-term commitment. 5. The total award value of $54.6 million represents a substantial investment in vocational training.

Value Assessment

Rating: fair

The contract's fixed-price level-of-effort structure provides some cost control, but the lack of detailed cost breakdowns makes a precise value assessment challenging. Benchmarking against similar Job Corps center operations would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The competition was conducted as 'full and open after exclusion of sources,' suggesting that while the competition was broad, specific criteria or circumstances led to the exclusion of certain potential bidders. This method can impact price discovery if the exclusion limits the number of highly competitive bids.

Taxpayer Impact: Taxpayers are funding essential job training services. The effectiveness of the program in placing individuals in jobs will ultimately determine the return on this investment.

Public Impact

Provides vocational training and employment services to youth, aiming to improve their career prospects. Supports local economic development by equipping individuals with in-demand skills. The operation of Job Corps centers is a key federal initiative for addressing unemployment and underemployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for performance metrics.
Potential impact of 'exclusion of sources' on competitive pricing.
Performance data not yet available to assess effectiveness.

Positive Signals

Clear objective of workforce development.
Fixed-price contract offers some cost predictability.
Long-term contract duration allows for program stability.

Sector Analysis

The contract falls under the 'Other Technical and Trade Schools' category, a sector focused on vocational training and workforce development. Spending in this area is driven by federal initiatives to equip citizens with skills for employment.

Small Business Impact

The data provided does not indicate whether small businesses were involved as subcontractors or partners in this contract award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management, is responsible for overseeing this contract. Standard oversight mechanisms for federal contracts should be in place to ensure performance and 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

Lack of detailed cost breakdown.
Ambiguity in 'exclusion of sources' justification.
No performance data available for effectiveness assessment.
Potential for limited competition despite 'full and open' designation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $54.6 million to STRATEGIX MANAGEMENT LLC. OPERATION OF THE THE INLAND EMPIRE JOB CORPS CENTER

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 $54.6 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-06-30.

What specific performance metrics are used to evaluate the success of the Inland Empire Job Corps Center operations under this contract, and how do they align with the $54.6 million investment?

The contract details do not specify the performance metrics. Typically, Job Corps centers are evaluated on metrics such as student enrollment, completion rates, job placement success, and post-placement earnings. A thorough review would require access to the contract's statement of work and performance work statement to understand how the $54.6 million investment is tied to measurable outcomes for participants and the program's overall effectiveness.

What were the specific reasons for excluding certain sources during the 'full and open competition' process, and did this exclusion potentially limit the competitiveness of the bids received?

The reason for excluding specific sources in a 'full and open competition after exclusion of sources' is not detailed in the provided data. Such exclusions often occur due to specific technical requirements, past performance issues, or unique capabilities needed for the contract. Without knowing the excluded sources and the justification, it's difficult to definitively assess the impact on price discovery, though any exclusion inherently narrows the competitive pool.

How does the per-student cost associated with this contract compare to national averages or benchmarks for similar Job Corps center operations, and what factors might explain any significant deviation

The provided data does not include per-student cost calculations or benchmarks for comparison. To assess this, one would need to know the number of students served annually and compare the total contract value divided by student count to established averages. Deviations could be explained by regional cost-of-living differences, the specific mix of training programs offered, or the intensity of support services provided to students.

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-00013

Offers Received: 6

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

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: $71,472,830

Exercised Options: $71,383,515

Current Obligation: $54,596,468

Actual Outlays: $49,610,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline