Department of Labor awards $44M contract to Career Systems Development Corp for youth vocational training in New York

Contract Overview

Contract Amount: $44,034,951 ($44.0M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2023-08-10

End Date: 2026-09-30

Contract Duration: 1,147 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

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 WRAPAROUND SERVICES WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES 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 $44.0 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES WRAPAROUND SERVICES WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES AT THE NEW YORK JOB CORPS CENTER. Key points: 1. The contract focuses on wrap-around services, including outreach, admissions, and career transition for young adults. 2. Career Systems Development Corporation is the sole awardee under a full and open competition. 3. The contract is a firm-fixed-price definitive contract, indicating a clear scope of work and payment structure. 4. This award supports the Job Corps program, a federal initiative for youth workforce development.

Value Assessment

Rating: good

The contract value of $44 million over approximately 3.8 years appears reasonable for comprehensive vocational training services. Benchmarking against similar large-scale youth development programs would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Taxpayer funds are being used to invest in youth workforce development, aiming to improve employment outcomes and reduce reliance on social services.

Public Impact

Provides essential job training and career support for young adults aged 16-24. Aims to enhance the employability and earning potential of participants. Supports the federal government's commitment to youth development and economic opportunity. The services are delivered at the New York Job Corps Center, impacting local youth.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service demands exceed initial projections.
Ensuring consistent quality of wrap-around services across all participants.
Measuring long-term career success and impact of the training.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive award process.
Focus on critical youth development and workforce readiness.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' category, which supports vocational training. Spending in this sector is crucial for addressing skills gaps and preparing the future workforce.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the awardee is Career Systems Development Corporation. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Standard oversight mechanisms for performance, financial management, and compliance are expected.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Contract duration is substantial (over 3 years), requiring sustained oversight.
Reliance on a single contractor for comprehensive services.
Potential challenges in measuring long-term employment success.
Ensuring equitable service delivery to all eligible youth.
Need for robust performance monitoring to ensure quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $44.0 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES WRAPAROUND SERVICES WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES AT THE NEW YORK JOB CORPS CENTER.

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 $44.0 million.

What is the period of performance?

Start: 2023-08-10. End: 2026-09-30.

What is the expected number of youth to be served by this contract and how does the cost per participant compare to similar programs?

The provided data does not specify the exact number of youth to be served. To assess value, a comparison of the total contract value against the projected number of participants would be necessary. Benchmarking the cost per participant against other Job Corps centers or similar vocational training initiatives would reveal if this contract represents an efficient use of funds.

What are the key performance indicators (KPIs) for this contract, and how will the contractor's performance be measured to mitigate risks?

Key performance indicators likely include outreach and admissions success rates, student retention, completion of training programs, and post-graduation employment placement rates. The Department of Labor will likely monitor these KPIs through regular reporting and site visits to ensure the contractor meets contractual obligations and provides effective services.

How will the effectiveness of the wrap-around services and career transition support be evaluated to ensure positive long-term outcomes for participants?

Effectiveness will be evaluated through tracking participant employment rates, wages, and job retention for a period after program completion. Feedback from participants and employers, along with analysis of skills acquired versus labor market demand, will also inform the assessment of long-term impact and program success.

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-00006

Offers Received: 5

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: $91,292,304

Exercised Options: $54,961,309

Current Obligation: $44,034,951

Actual Outlays: $38,368,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline