Labor awards $23M contract to Chugach for Alaska Job Corps Center operations

Contract Overview

Contract Amount: $23,038,124 ($23.0M)

Contractor: Chugach Training and Educational Solutions, LLC

Awarding Agency: Department of Labor

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS CONTRACT IS FOR THE OPERATION OF ALASKA JOB CORPS CENTER WITH OUTREACH & ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: PALMER, MATANUSKA SUSITNA County, ALASKA, 99645

State: Alaska Government Spending

Plain-Language Summary

Department of Labor obligated $23.0 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC for work described as: THIS CONTRACT IS FOR THE OPERATION OF ALASKA JOB CORPS CENTER WITH OUTREACH & ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. Contract focuses on operating the Alaska Job Corps Center, including outreach, admissions, and career transition services. 2. Chugach Training and Educational Solutions, LLC is the sole awardee. 3. The contract is a Firm Fixed Price type, awarded under full and open competition after exclusion of sources. 4. This award represents a significant investment in workforce development for Alaska.

Value Assessment

Rating: good

The contract value of $23,038,124.10 over three years appears reasonable for comprehensive job training and support services. Benchmarking against similar Job Corps center operations would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, indicating a competitive process was utilized. This method aims to ensure fair pricing and access for qualified offerors.

Taxpayer Impact: Taxpayer funds are being used to support workforce development and job training programs, aiming for long-term economic benefits through improved employment outcomes.

Public Impact

Provides essential job training and career services to Alaskans, potentially improving employment rates and economic mobility. Supports the operational continuity of the Alaska Job Corps Center, ensuring access to vital educational resources. The contract's success could lead to a more skilled workforce in Alaska, benefiting local industries. Potential for positive impact on individuals seeking new career paths or enhanced job skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns if operational needs exceed initial projections.
Dependence on a single contractor for critical services.

Positive Signals

Clear objective of workforce development.
Competitive award process.
Long-term contract duration allows for stable service provision.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' sector, specifically focusing on workforce development and vocational training. Spending in this sector is crucial for equipping individuals with skills for in-demand jobs.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or subcontracted.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this contract. Oversight should focus on ensuring service delivery meets program goals and contractual obligations.

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 performance monitoring.
Ensuring quality of training and services.
Tracking job placement success rates.
Managing potential cost escalations.
Assessing contractor's long-term viability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.0 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC. THIS CONTRACT IS FOR THE OPERATION OF ALASKA JOB CORPS CENTER WITH OUTREACH & ADMISSIONS AND CAREER TRANSITION SERVICES.

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 $23.0 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

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

Key performance indicators likely include student enrollment and retention rates, graduation rates, job placement success, and participant satisfaction. Success will be measured against established benchmarks for these metrics, ensuring the contractor effectively delivers on the program's objectives for workforce development and career readiness.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential underperformance by the contractor, challenges in student recruitment and retention, and unforeseen operational cost increases. Mitigation strategies may involve robust contract monitoring, regular performance reviews, clear communication channels, and contingency planning for operational disruptions.

How does the pricing structure ensure value for taxpayer money, given the firm fixed price nature?

The firm fixed price structure shifts cost risk to the contractor, incentivizing efficient operations. Value is ensured through the competitive bidding process which should have established a fair market price. Ongoing oversight will verify that the services delivered align with the contracted price and meet quality standards.

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

Offers Received: 2

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: $50,909,041

Exercised Options: $30,228,134

Current Obligation: $23,038,124

Actual Outlays: $18,983,118

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $230,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline