DOL Awards $32.2M Contract to Chugach Training for Technical Education Services

Contract Overview

Contract Amount: $32,219,998 ($32.2M)

Contractor: Chugach Training and Educational Solutions, LLC

Awarding Agency: Department of Labor

Start Date: 2023-09-28

End Date: 2026-10-31

Contract Duration: 1,129 days

Daily Burn Rate: $28.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLEVELAND JCC WITH OA/CTS

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44110

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $32.2 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC for work described as: CLEVELAND JCC WITH OA/CTS Key points: 1. Contract awarded to Chugach Training and Educational Solutions, LLC for $32.2 million. 2. The contract is for 'Other Technical and Trade Schools' services. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract type is Firm Fixed Price with a duration of 1129 days. 5. The award was made by the Department of Labor, Office of the Assistant Secretary for Administration and Management.

Value Assessment

Rating: good

The contract value of $32.2 million appears reasonable for a multi-year technical education services contract. Benchmarking against similar contracts for 'Other Technical and Trade Schools' (NAICS 611519) would provide a more precise assessment, but the duration and scope suggest a fair price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was intended. This method aims to ensure fair price discovery by allowing multiple vendors to bid, though the exclusion of specific sources might limit the breadth of competition.

Taxpayer Impact: The competitive award process is designed to secure value for taxpayer dollars by fostering a bidding environment. The firm fixed price structure further protects against cost overruns.

Public Impact

Provides essential technical and trade education services, potentially upskilling the workforce. Supports the Department of Labor's mission in workforce development and training. The contract duration of nearly three years ensures continuity of services. Firm Fixed Price contract type offers cost certainty for the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
NAICS code 'Other Technical and Trade Schools' is broad; specific services are not detailed.
No mention of small business participation goals.

Positive Signals

Full and open competition was utilized.
Firm Fixed Price contract type provides cost certainty.
Long contract duration ensures service continuity.

Sector Analysis

This contract falls under the Education and Training sector, specifically NAICS 611519 (Other Technical and Trade Schools). Spending in this sector often supports government workforce development initiatives and specialized skill training. Benchmarks for similar contracts would depend on the specific technical skills being taught.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this award. Standard contract oversight procedures should be in place to monitor performance and ensure compliance with the firm fixed price terms.

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 detail on specific training services.
Potential for limited competition due to source exclusion.
No clear indication of small business utilization.
Broad NAICS code may obscure the true nature of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.2 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC. CLEVELAND JCC WITH OA/CTS

Who is the contractor on this award?

The obligated recipient is CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, 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 $32.2 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-10-31.

What specific technical and trade skills are being provided under this contract, and how do they align with current labor market demands?

The contract's NAICS code, 611519, is broad and encompasses various technical and trade schools. Without further details on the curriculum and training programs, it's difficult to assess the specific skills being imparted. Aligning these skills with current labor market demands is crucial for ensuring the contract's effectiveness in workforce development and future employment opportunities for trainees.

What was the rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process?

The rationale for excluding specific sources in a 'Full and Open Competition After Exclusion of Sources' process typically involves factors such as past performance, specialized capabilities, or unique requirements that only a subset of potential offerors can meet. Understanding this rationale is key to assessing whether the exclusion unduly limited competition and potentially impacted price discovery or overall value for the government.

How will the effectiveness of the training programs be measured to ensure value for taxpayer investment?

The effectiveness of the training programs should be measured through key performance indicators (KPIs) such as trainee completion rates, post-training employment rates, and employer satisfaction. The Department of Labor should establish clear metrics and regularly review performance data to ensure the training is meeting its objectives and providing a strong return on the $32.2 million investment.

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-22-R-00009

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation

Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,777,878

Exercised Options: $42,336,627

Current Obligation: $32,219,998

Actual Outlays: $26,642,365

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $137,980

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline