Department of Labor awards $43.4M contract for Job Corps Center operations to ALEUT-ODLE TRAINING AND DEVELOPMENT JV 2, LLC

Contract Overview

Contract Amount: $43,436,012 ($43.4M)

Contractor: Aleut-Odle Training and Development JV 2, LLC

Awarding Agency: Department of Labor

Start Date: 2022-06-23

End Date: 2026-07-31

Contract Duration: 1,499 days

Daily Burn Rate: $29.0K/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: BASE AWARD FOR OPERATION OF THE CARRASCO JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79935

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $43.4 million to ALEUT-ODLE TRAINING AND DEVELOPMENT JV 2, LLC for work described as: BASE AWARD FOR OPERATION OF THE CARRASCO JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. The contract focuses on the operation of the Carrasco Job Corps Center, including outreach, admissions, and career transition services. 2. Awarded under a full and open competition, this contract aims to ensure robust service delivery for vocational training. 3. The contract duration of approximately 4 years suggests a stable, long-term commitment to the center's operations. 4. The fixed-price contract type helps to control costs and provides predictability for the government. 5. The geographic location in Texas (TX) indicates a focus on serving a specific regional population. 6. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services.

Value Assessment

Rating: good

The base award of $43.4 million over approximately four years for operating a Job Corps center appears reasonable given the scope of services. Benchmarking against similar Job Corps center contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without detailed performance metrics and historical cost data for this specific center or comparable facilities, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and evaluated. The presence of 5 bidders (no) suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The competitive nature of the procurement process is a positive indicator for price discovery and ensuring that taxpayer funds are used efficiently.

Taxpayer Impact: A competitive award process increases the likelihood of securing services at a fair market price, benefiting taxpayers by minimizing potential overspending and encouraging innovation from contractors.

Public Impact

The primary beneficiaries are individuals seeking vocational training and career development services through the Job Corps program. The contract ensures the continued operation of the Carrasco Job Corps Center, providing essential educational and training resources. Services include outreach to identify eligible participants, admissions processing, and career transition support to help graduates find employment. The geographic impact is concentrated in Texas, serving the workforce development needs of the region. Workforce implications include the creation and sustainment of jobs for the center's staff and instructors, as well as the development of a skilled workforce for local industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of services expands beyond the initial fixed-price agreement.
Ensuring consistent quality of training and placement services across all aspects of the contract.
Monitoring contractor performance to ensure adherence to program goals and participant success metrics.

Positive Signals

Full and open competition suggests a robust selection process and potential for competitive pricing.
Firm-fixed-price contract type shifts cost risk to the contractor, promoting cost control.
Long contract duration provides stability for program operations and participant continuity.

Sector Analysis

The federal government's investment in Job Corps centers falls under the broader education and workforce development sector, specifically vocational and technical training. This sector is crucial for equipping individuals with the skills needed for in-demand jobs. Comparable spending benchmarks would involve analyzing other Job Corps center operating contracts, as well as contracts for similar workforce development and vocational training programs administered by federal agencies. The market for such services is characterized by specialized training providers and educational institutions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the prime contractor is a joint venture, which may involve small business participation. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized services or supplies.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (SA). Accountability measures would include performance standards outlined in the contract, regular reporting requirements, and potential site visits. Transparency is generally maintained through contract award databases like SAM.gov. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Vocational Rehabilitation Services
Federal Job Training Programs

Risk Flags

Potential for limited competition due to source exclusion justification.
Need for robust performance monitoring to ensure training quality and job placement success.
Dependence on contractor's historical performance and capacity for managing complex operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.4 million to ALEUT-ODLE TRAINING AND DEVELOPMENT JV 2, LLC. BASE AWARD FOR OPERATION OF THE CARRASCO JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is ALEUT-ODLE TRAINING AND DEVELOPMENT JV 2, 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 $43.4 million.

What is the period of performance?

Start: 2022-06-23. End: 2026-07-31.

What is the historical spending pattern for the Carrasco Job Corps Center operations?

Historical spending data for the Carrasco Job Corps Center is not directly available in the provided data. However, the current award of $43.4 million over approximately four years (1499 days) suggests an average annual expenditure of roughly $10.85 million. To understand historical patterns, one would need to access prior contract awards for this specific center, if any, or analyze aggregate spending on Job Corps center operations across the Department of Labor over several fiscal years. This would reveal trends in contract values, duration, and the number of competitors over time, providing context for the current award's scale and competitive landscape.

How does the per-unit cost of training compare to other Job Corps centers?

A direct per-unit cost comparison for training is not feasible with the provided data, as 'per-unit' metrics (e.g., cost per student trained, cost per successful placement) are not specified. To conduct such a comparison, one would need access to detailed performance data from the contractor, including the number of students served, the types of training provided, and the outcomes achieved (e.g., graduation rates, job placement rates). This information, when benchmarked against similar Job Corps centers operating under comparable contracts and in similar economic regions, would allow for an assessment of cost-effectiveness and value for money. Without this granular data, the current award can only be assessed based on its total value and competitive context.

What is the track record of ALEUT-ODLE TRAINING AND DEVELOPMENT JV 2, LLC in managing federal contracts, particularly in workforce development?

Assessing the track record of ALEUT-ODLE TRAINING AND DEVELOPMENT JV 2, LLC requires examining their past performance on federal contracts. Information on previous awards, contract values, duration, and performance reviews (if publicly available) would be crucial. Specifically, their experience with operating Job Corps centers or similar workforce development and training programs would be highly relevant. A review of their contract history might reveal patterns of successful contract completion, any instances of performance issues, or significant contract modifications. This due diligence is essential to gauge their capability to effectively manage the Carrasco Job Corps Center operations and deliver on the contract's objectives.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary. Typically, Job Corps center contracts include KPIs related to student recruitment and enrollment, academic and vocational training completion rates, graduation rates, job placement rates, and post-placement employment retention. Measurement methods would likely involve regular reporting by the contractor, data validation by the Department of Labor, and potentially site visits or audits. The effectiveness of the contract hinges on the clear definition and rigorous measurement of these KPIs to ensure the program's goals of preparing individuals for successful careers are met.

What is the potential risk associated with the 'exclusion of sources' clause in the competition type?

The competition type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, certain sources were specifically excluded from consideration. The risk associated with this lies in understanding the rationale behind the exclusion. If the exclusion was based on legitimate technical requirements or past performance issues, it might not pose a significant risk. However, if the exclusion was arbitrary or overly restrictive, it could limit competition, potentially leading to higher prices or reduced innovation. A thorough review of the justification for excluding sources is necessary to assess the associated risks to cost, performance, and overall program effectiveness.

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-00017

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5775 MARK DABLING BLVD STE 105, COLORADO SPRINGS, CO, 80919

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,445,763

Exercised Options: $46,367,440

Current Obligation: $43,436,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline