Labor Department Awards $30.8M Contract to Career Systems Development Corp for Ottumwa JCC Operations
Contract Overview
Contract Amount: $30,861,173 ($30.9M)
Contractor: Career Systems Development Corporation
Awarding Agency: Department of Labor
Start Date: 2023-06-01
End Date: 2026-05-31
Contract Duration: 1,095 days
Daily Burn Rate: $28.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPERATION OF THE OTTUMWA JCC W/OACTS
Place of Performance
Location: OTTUMWA, WAPELLO County, IOWA, 52501
State: Iowa Government Spending
Plain-Language Summary
Department of Labor obligated $30.9 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATION OF THE OTTUMWA JCC W/OACTS Key points: 1. Contract awarded to Career Systems Development Corporation for $30.8M. 2. The contract is for the operation of the Ottumwa JCC. 3. This is a firm-fixed-price contract with a duration of 1095 days. 4. The contract was awarded under full and open competition. 5. The NAICS code is 611519, indicating Other Technical and Trade Schools.
Value Assessment
Rating: good
The contract's firm-fixed-price structure suggests a clear understanding of costs. Benchmarking against similar vocational training or facility operation contracts would be necessary for a definitive value assessment, but the price appears reasonable for a multi-year operation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for the services rendered.
Public Impact
Provides essential services through the Ottumwa JCC, likely impacting local workforce development. Supports job training and technical education, contributing to the local economy. The contract duration of three years offers stability for service delivery and planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or KPIs in the provided data.
- Potential for cost overruns if operational needs exceed initial projections, despite fixed-price.
- Dependence on a single contractor for a critical operational function.
Positive Signals
- Awarded through full and open competition, suggesting fair market pricing.
- Firm-fixed-price contract provides cost certainty for the government.
- Long-term contract (3 years) ensures continuity of services.
Sector Analysis
The sector falls under educational services, specifically technical and trade schools. Spending in this area often focuses on workforce development and vocational training, with contract values varying based on program scope and duration.
Small Business Impact
The data indicates the awardee is Career Systems Development Corporation. There is no information provided to suggest whether small businesses were involved as subcontractors or if this contract specifically aimed to promote small business participation.
Oversight & Accountability
The Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM) is responsible for this contract. Standard oversight mechanisms for contract performance and financial management are expected to be in place.
Related Government Programs
- Other Technical and Trade Schools
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Potential for scope creep if operational requirements expand beyond the initial contract.
- Reliance on a single contractor may limit flexibility in adapting to changing needs.
- Performance monitoring is critical to ensure service quality and value for money.
- The fixed-price nature might disincentivize innovation or exceeding basic requirements.
Tags
other-technical-and-trade-schools, department-of-labor, ia, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $30.9 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATION OF THE OTTUMWA JCC W/OACTS
Who is the contractor on this award?
The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $30.9 million.
What is the period of performance?
Start: 2023-06-01. End: 2026-05-31.
What specific services are included under the 'Operation of the Ottumwa JCC' and how do they align with the Department of Labor's mission?
The 'Operation of the Ottumwa JCC' likely encompasses facility management, program delivery, and support services for the Job Corps Center in Ottumwa. These services are crucial for the Department of Labor's mission of preparing young people for careers by providing them with the training and education needed to succeed in the workforce.
What are the key performance indicators (KPIs) used to measure the success of Career Systems Development Corporation in operating the Ottumwa JCC?
Key performance indicators would typically include student enrollment rates, completion rates, job placement rates, employer satisfaction, and adherence to program standards. Measuring these KPIs ensures the contractor is effectively delivering on the contract's objectives and providing valuable training and support to participants.
How does the $30.8 million contract value compare to similar Job Corps center operations contracts awarded by the Department of Labor?
A comprehensive comparison would require access to a database of similar contracts. However, $30.8 million over three years ($10.27M annually) for operating a Job Corps center seems within a reasonable range, considering the scope of services, staffing, and facility costs involved in such programs.
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
Solicitation ID: 1631-OJC-23-OJ5-0064
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 75 THRUWAY PARK DR, WEST HENRIETTA, NY, 14586
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,304,259
Exercised Options: $35,530,187
Current Obligation: $30,861,173
Actual Outlays: $27,471,843
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-01
Current End Date: 2026-05-31
Potential End Date: 2028-05-31 00:00:00
Last Modified: 2026-03-27
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