Department of Labor awards $33.2M contract for technical and trade school services to Arbor E & T LLC

Contract Overview

Contract Amount: $33,236,057 ($33.2M)

Contractor: Arbor E & T LLC

Awarding Agency: Department of Labor

Start Date: 2023-07-31

End Date: 2026-08-31

Contract Duration: 1,127 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JCC OPERATION TASK ORDER

Place of Performance

Location: RIVERTON, FREMONT County, WYOMING, 82501

State: Wyoming Government Spending

Plain-Language Summary

Department of Labor obligated $33.2 million to ARBOR E & T LLC for work described as: JCC OPERATION TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Services are for technical and trade school operations, aligning with workforce development goals. 4. The contract duration spans over three years, indicating a significant, ongoing need. 5. The awardee, Arbor E & T LLC, will provide services in Wyoming. 6. The North American Industry Classification System (NAICS) code 611519 points to specialized vocational training.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contract data. The firm-fixed-price structure offers some cost control. However, the total award amount of $33.2 million over approximately three years suggests a substantial investment in technical and trade school services. Further analysis would require understanding the scope of services provided and comparing them to similar government training programs or private sector vocational education costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests the agency sought the best value through a broad solicitation.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous terms and pricing for the government's investment in workforce development.

Public Impact

Individuals seeking technical and trade skills development in Wyoming will benefit from the services provided. The contract supports workforce development initiatives by funding vocational training programs. The geographic impact is focused on Wyoming, where the services will be delivered. The contract has implications for the skilled labor workforce, potentially enhancing it through specialized training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the training provided.
The total contract value is significant, requiring robust oversight to ensure funds are used efficiently.
Details on the specific technical and trade skills covered are not readily available, limiting a full understanding of the program's scope.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive selection process.
Firm-fixed-price contract type provides budget certainty for the Department of Labor.
Long-term contract duration (over 3 years) indicates a sustained commitment to workforce development.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical education. The market for such services is diverse, encompassing public institutions, private vocational schools, and specialized training providers. Government spending in this area often supports workforce development, re-skilling initiatives, and specific industry needs. Comparable spending benchmarks would depend on the specific trades and skill levels being addressed, but the $33.2 million award over three years represents a significant investment in vocational training.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not provided in the data. As it was awarded under full and open competition, there is no explicit indication of a small business preference. Further investigation would be needed to determine if any small businesses are involved as subcontractors or if there were specific goals set for their participation.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Labor's contracting officers and program managers. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is generally facilitated through contract award databases, though specific details on service delivery and outcomes may be less public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
Department of Labor Job Training Programs
Vocational Rehabilitation Services
Federal Aid to Vocational Education

Risk Flags

Lack of detailed performance metrics
Limited information on contractor's past performance
Scope of services not fully defined in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $33.2 million to ARBOR E & T LLC. JCC OPERATION TASK ORDER

Who is the contractor on this award?

The obligated recipient is ARBOR E & T 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 $33.2 million.

What is the period of performance?

Start: 2023-07-31. End: 2026-08-31.

What specific technical and trade skills are covered under this contract?

The provided data indicates the contract is for 'Other Technical and Trade Schools' (NAICS 611519) but does not specify the exact technical and trade skills to be taught. This NAICS code encompasses a broad range of vocational programs, including but not limited to automotive repair, culinary arts, cosmetology, HVAC, welding, and various allied health professions. To understand the precise scope, one would need to review the contract's statement of work (SOW) or performance work statement (PWS), which details the curriculum, training objectives, and expected learning outcomes for participants.

How does the $33.2 million contract value compare to historical spending on similar services by the Department of Labor?

Without access to historical spending data for comparable technical and trade school services procured by the Department of Labor, a direct comparison is not feasible. The $33.2 million award over approximately three years (1127 days) represents an average annual expenditure of roughly $11 million. To assess if this is high or low, one would need to analyze past contracts for similar training programs, considering factors like the number of individuals trained, the duration and intensity of training, and the specific skills imparted. Benchmarking against other federal agencies or state-level workforce development programs could also provide context.

What are the key performance indicators (KPIs) for Arbor E & T LLC under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) for Arbor E & T LLC. Typically, government contracts include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines measurable performance standards. For a contract like this, KPIs might include metrics such as student completion rates, job placement rates post-training, employer satisfaction with graduates, adherence to training schedules, and compliance with safety and educational standards. The absence of this information in the summary data necessitates a review of the full contract documentation to assess performance expectations and evaluation criteria.

What is the track record of Arbor E & T LLC in delivering government contracts, particularly in workforce development?

Information regarding Arbor E & T LLC's specific track record with government contracts is not detailed in the provided data. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Understanding their experience with similar workforce development or educational service contracts, their past performance ratings, and their ability to meet delivery schedules and quality standards would be crucial for evaluating their reliability on this $33.2 million award.

What is the potential risk associated with a firm-fixed-price contract for vocational training services?

The primary risk with a firm-fixed-price (FFP) contract for vocational training is that the contractor, Arbor E & T LLC, might be incentivized to cut corners on quality or resources to maximize profit if costs exceed initial estimates. Conversely, if the contractor's costs are significantly lower than anticipated, the government may not receive the full benefit of potential savings. For the government, the risk lies in ensuring the training meets the required standards and effectively prepares individuals for employment. Robust government oversight and clearly defined performance standards in the contract are essential to mitigate these risks and ensure value for money.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 805 N WHITTINGTON PKWY, LOUISVILLE, KY, 40222

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

Financial Breakdown

Contract Ceiling: $34,531,740

Exercised Options: $34,523,893

Current Obligation: $33,236,057

Actual Outlays: $28,133,715

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1605JE22D0017

IDV Type: IDC

Timeline