Department of Labor awards $60.2M contract for San Diego Job Corps Center operations and services

Contract Overview

Contract Amount: $60,243,894 ($60.2M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2023-12-22

End Date: 2027-01-31

Contract Duration: 1,136 days

Daily Burn Rate: $53.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Place of Performance

Location: IMPERIAL BEACH, SAN DIEGO County, CALIFORNIA, 91932

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $60.2 million to MANAGEMENT & TRAINING CORPORATION for work described as: THIS CONTRACT IS FOR THE OPERATION OF SAN DIEGO JOB CORPS CENTER WITH OUTREACH & ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. Contract focuses on essential services including center operation, outreach, admissions, and career transition. 2. Management & Training Corporation is the incumbent contractor, suggesting potential for stable service delivery. 3. The contract duration of over three years indicates a significant commitment to ongoing support. 4. Awarded under full and open competition, this contract should have attracted a competitive field of bidders. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools.

Value Assessment

Rating: good

The contract value of $60.2 million over approximately three years for operating a Job Corps center is substantial. Benchmarking against similar contracts for Job Corps centers would provide a clearer picture of value for money. However, the firm fixed-price nature of the contract suggests that the price was determined upfront and is intended to cover all costs, which can be advantageous for the government if managed efficiently by the contractor. The absence of specific performance metrics in the provided data makes a detailed value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With nine bidders participating, the competition level appears robust. This level of competition is generally expected to drive down prices and encourage innovative solutions as contractors vie for the award. The presence of multiple bidders suggests a healthy market for these services.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. The government can expect to receive better value for its investment due to the pressure on bidders to offer competitive terms.

Public Impact

The primary beneficiaries are students enrolled in the San Diego Job Corps program, who will receive training and support services. The contract ensures the continued operation of the San Diego Job Corps Center, providing critical educational and vocational training. Services include outreach and admissions to recruit eligible youth and career transition services to help graduates find employment. The contract has a direct impact on the local workforce in San Diego, California, by equipping individuals with job skills. It supports the Department of Labor's mission to prepare young people for careers and further education.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract is not managed effectively by the contractor.
Ensuring consistent quality of training and support services across the contract duration.
Measuring the long-term success and employment outcomes of program participants.
Maintaining adequate outreach to diverse and eligible youth populations.
Adapting training programs to meet evolving labor market demands.

Positive Signals

Awarded under full and open competition with nine bidders, indicating strong market interest and potential for competitive pricing.
Firm Fixed Price contract type shifts cost risk to the contractor, providing budget certainty for the government.
The contract duration of over three years allows for stable program operations and long-term planning.
The incumbent contractor, Management & Training Corporation, may bring valuable experience and efficiency to the role.
The contract directly supports federal workforce development initiatives and serves a clear public need.

Sector Analysis

This contract falls within the education and workforce development sector, specifically focusing on vocational training and support services for young adults. The Job Corps program is a significant federal initiative aimed at addressing poverty and unemployment among disadvantaged youth. The market for operating such centers involves specialized educational service providers, often competing for government contracts. Comparable spending benchmarks would typically involve analyzing the per-student cost or per-center operational costs of similar federally funded training programs.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the primary focus was on full and open competition. While there is no explicit small business set-aside, the prime contractor, Management & Training Corporation, may engage small businesses as subcontractors to fulfill certain aspects of the contract. The impact on the small business ecosystem would depend on the subcontracting opportunities offered and the ability of small businesses to compete for those roles.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Department of Labor Grants and Contracts
Vocational Education Services

Risk Flags

Potential for performance issues if contractor fails to meet key metrics.
Risk associated with long-term contract duration and potential for changing needs.
Ensuring equitable access and service delivery to diverse student populations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $60.2 million to MANAGEMENT & TRAINING CORPORATION. THIS CONTRACT IS FOR THE OPERATION OF SAN DIEGO JOB CORPS CENTER WITH OUTREACH & ADMISSIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $60.2 million.

What is the period of performance?

Start: 2023-12-22. End: 2027-01-31.

What is the historical spending pattern for the San Diego Job Corps Center operations?

To assess historical spending patterns for the San Diego Job Corps Center, one would need to examine contract awards for this specific center over previous years. This would involve querying federal procurement databases (like FPDS or USASpending.gov) for contracts awarded to the incumbent or previous operators of the San Diego center. Analyzing the total value, duration, and type of these past contracts would reveal trends in federal investment. For instance, comparing the current $60.2 million award to previous awards could indicate an increase or decrease in funding, potentially influenced by inflation, program expansion, or changes in service scope. Understanding these historical trends is crucial for evaluating the reasonableness of the current contract's value and for forecasting future budgetary needs.

How does the per-student cost of this contract compare to other Job Corps centers?

A key metric for evaluating the value of this contract would be its per-student cost. To perform this comparison, we would need the projected number of students to be served by the San Diego Job Corps Center under this $60.2 million contract. Once that figure is obtained, the total contract value can be divided by the number of students to derive a per-student cost. This figure can then be benchmarked against the average per-student cost of other Job Corps centers nationwide, as reported by the Department of Labor or available through procurement data analysis. Significant deviations from the average could indicate either exceptional efficiency and value or potential issues with cost-effectiveness, warranting further investigation into the specific services provided and the local operating environment.

What is Management & Training Corporation's track record in operating Job Corps centers?

Management & Training Corporation (MTC) is a significant operator of Job Corps centers and other correctional and workforce training facilities. To assess their track record for this specific contract, a review of their past performance on similar federal contracts, particularly other Job Corps center operations, would be necessary. This would involve examining past performance evaluations, any documented instances of contract disputes or successes, and their history of meeting performance metrics and compliance requirements. MTC's experience as an incumbent suggests a level of familiarity with the program's demands. However, a thorough review would look at objective performance data, client feedback (if available), and any corrective actions taken on previous contracts to ensure they are well-positioned to deliver effective services for the San Diego center.

What are the primary performance metrics used to evaluate contractor success for this Job Corps center?

While the provided data does not detail specific performance metrics, contracts for Job Corps centers typically include rigorous performance standards. These often revolve around key outcomes such as student enrollment rates, completion rates, job placement rates post-graduation, and average wages earned by graduates. Other metrics might include the quality and timeliness of training delivery, adherence to safety and facility standards, and effective outreach to recruit eligible participants. The Department of Labor would likely have established Key Performance Indicators (KPIs) that the contractor, Management & Training Corporation, must meet. Performance evaluations would assess the contractor's success against these KPIs, influencing future contract awards and potentially triggering remedies for underperformance.

How has the scope of services evolved for the San Diego Job Corps Center over time?

Determining the evolution of services for the San Diego Job Corps Center would require analyzing the scope of work in previous contracts compared to the current one. This involves comparing the specific requirements, deliverables, and service areas outlined in past awards. For example, have new training programs been added, have outreach strategies changed, or have career transition services been expanded or modified? Such an analysis would reveal whether the center's mission has broadened, adapted to new labor market demands, or become more specialized. Understanding this evolution helps contextualize the current contract's value and ensures that federal funding aligns with current workforce development needs and best practices.

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-00007

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $139,738,443

Exercised Options: $81,867,836

Current Obligation: $60,243,894

Actual Outlays: $47,431,247

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $971,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline