Department of Labor awards $16.6M contract for Job Corps vocational training in New York

Contract Overview

Contract Amount: $16,601,727 ($16.6M)

Contractor: DB Grant Associates, Inc.

Awarding Agency: Department of Labor

Start Date: 2023-08-07

End Date: 2026-09-30

Contract Duration: 1,150 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT IS FOR ACADEMIC AND CAREER TECHNICAL TRAINING AT THE NEW YORK JOB CORPS CENTER.

Place of Performance

Location: BRONX, BRONX County, NEW YORK, 10453

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $16.6 million to DB GRANT ASSOCIATES, INC. for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT IS FOR ACADEMIC AND CAREER TECHNICAL TRAINING AT THE NEW YORK JOB CORPS CENTER. Key points: 1. Contract aims to provide academic and career technical training for youth. 2. Focus on vocational skills development for individuals aged 16-24. 3. Awarded to DB Grant Associates, Inc., a new contractor for this specific service. 4. Contract duration extends over three years, indicating a need for sustained services. 5. Utilizes a Cost Plus Incentive Fee structure, aligning contractor incentives with performance. 6. Competition was full and open, suggesting a robust market for these services.

Value Assessment

Rating: fair

The contract's value of $16.6 million over approximately three years for vocational training services appears to be within a reasonable range for a program of this nature. Benchmarking against similar Job Corps center contracts would provide a clearer picture of value for money. The Cost Plus Incentive Fee (CPIF) structure allows for performance-based adjustments, which can incentivize efficiency and effectiveness, but also introduces potential for cost overruns if not managed carefully. Without specific performance metrics and outcomes data, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of one award suggests that DB Grant Associates, Inc. was selected as the most advantageous offer. A full and open competition generally fosters price discovery and allows the government to select from a range of capabilities and pricing structures. The specific number of bids received is not provided, which would offer further insight into the level of market interest.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it is expected to drive down costs through market forces and ensure the government receives competitive pricing for essential services.

Public Impact

Young adults aged 16-24 in New York will benefit from vocational training opportunities. Services include academic instruction and career technical training to enhance employability. The program aims to equip participants with skills for in-demand occupations. Potential positive impact on the local workforce by developing a skilled labor pool. Geographic impact is focused on New York, serving the local youth population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee (CPIF) contracts can lead to higher costs if performance targets are not well-defined or achievable.
The contractor, DB Grant Associates, Inc., is new to this specific service area for the Department of Labor, raising questions about their track record in delivering Job Corps programming.
Lack of detailed performance metrics in the provided data makes it difficult to assess the expected effectiveness and outcomes of the training.

Positive Signals

The contract was awarded through full and open competition, suggesting a competitive bidding process that should yield fair pricing.
The Cost Plus Incentive Fee (CPIF) structure incentivizes the contractor to meet or exceed performance expectations.
The contract duration of over three years indicates a commitment to providing sustained training services to youth.

Sector Analysis

The vocational training sector is crucial for workforce development, providing individuals with the skills needed for various industries. Job Corps, a government-funded program, plays a significant role in this sector by offering training to disadvantaged youth. This contract fits within the broader landscape of federal investments in education and workforce development. Comparable spending benchmarks would involve looking at other Job Corps center contracts or similar youth training initiatives funded by federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and does not explicitly mention subcontracting requirements for small businesses (sb: false). Therefore, the direct impact on the small business ecosystem through this specific award appears limited. However, the prime contractor may engage small businesses as subcontractors, which would need to be assessed through further review of subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). The Cost Plus Incentive Fee (CPIF) structure necessitates robust monitoring of performance metrics and costs to ensure accountability and value for money. Transparency regarding program outcomes and contractor performance will be key to assessing the effectiveness of this award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Youth Training Programs
Federal Job Training Contracts
Vocational Education Services

Risk Flags

New Contractor for Service Area
Cost Plus Incentive Fee Structure
Lack of Detailed Performance Metrics in Summary Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $16.6 million to DB GRANT ASSOCIATES, INC.. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT IS FOR ACADEMIC AND CAREER TECHNICAL TRAINING AT THE NEW YORK JOB CORPS CENTER.

Who is the contractor on this award?

The obligated recipient is DB GRANT ASSOCIATES, INC..

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 $16.6 million.

What is the period of performance?

Start: 2023-08-07. End: 2026-09-30.

What is the track record of DB Grant Associates, Inc. in delivering vocational training services, particularly for youth programs like Job Corps?

Based on the provided data, DB Grant Associates, Inc. is listed as the contractor for this specific Job Corps center contract. However, the data does not offer historical information on their performance or track record with similar youth vocational training programs. Further investigation into the company's past performance, client references, and experience with government contracts, especially those administered by the Department of Labor or other agencies focused on workforce development, would be necessary to fully assess their capabilities and reliability in delivering these essential services. Without this context, it is difficult to gauge their established success in this domain.

How does the awarded amount of $16.6 million compare to the average cost of operating a Job Corps center or similar vocational training programs?

The awarded amount of $16.6 million for academic and career technical training at the New York Job Corps Center over approximately three years (from August 2023 to September 2026) needs to be benchmarked against similar contracts to assess value. The average cost of operating a Job Corps center can vary significantly based on location, size, student population, and the scope of services offered. Without access to a database of comparable Job Corps center contracts or detailed operational cost data for similar vocational training programs, it is challenging to definitively state whether $16.6 million represents a high, low, or average expenditure. However, this figure represents a substantial investment in youth workforce development.

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

The provided contract data specifies a 'Cost Plus Incentive Fee' (CPIF) payment structure, which inherently implies that performance metrics and expected outcomes are defined within the contract's statement of work. However, these specific KPIs and outcome measures are not detailed in the summary data. Typically, for Job Corps contracts, KPIs would include metrics such as student enrollment rates, completion rates, job placement rates, starting wages of placed graduates, and employer satisfaction. The 'incentive fee' component suggests that the contractor, DB Grant Associates, Inc., will receive additional compensation for exceeding certain performance targets. A thorough review of the full contract document would be required to identify these specific KPIs and the methodology for measuring success.

What is the historical spending pattern for academic and career technical training at the New York Job Corps Center?

The provided data snippet focuses on a single, newly awarded contract (effective August 7, 2023) for the New York Job Corps Center. It does not contain historical spending information for this specific center or for similar services at this location. To understand historical spending patterns, one would need to access procurement databases or agency budget reports that track expenditures over previous fiscal years for the New York Job Corps Center or its predecessors. Analyzing past contract awards, their values, durations, and the contractors involved would reveal trends in investment and service provision over time.

What are the potential risks associated with a Cost Plus Incentive Fee (CPIF) contract for vocational training, and how are they mitigated?

A primary risk with CPIF contracts is the potential for cost overruns if the target costs are not accurately estimated or if the incentive structure is not carefully designed. The government bears the risk of increased costs if the contractor incurs them while striving to meet performance goals. Mitigation strategies include rigorous negotiation of target costs, clear and measurable performance objectives, robust government oversight to monitor progress and expenditures, and well-defined incentive fee structures that reward efficiency and effectiveness without unduly inflating costs. For this Job Corps contract, the Department of Labor's contracting officers and program managers would be responsible for monitoring performance and costs to ensure the program stays within budget and achieves its intended outcomes.

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: 1605JW-23-R-00005

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 39 BROADWAY 31ST FL, NEW YORK, NY, 10006

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

Financial Breakdown

Contract Ceiling: $34,122,421

Exercised Options: $20,007,248

Current Obligation: $16,601,727

Actual Outlays: $13,714,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline