Department of Labor awards $16.4M contract to Cherokee Nation for Job Corps Center services

Contract Overview

Contract Amount: $16,428,190 ($16.4M)

Contractor: Cherokee Nation

Awarding Agency: Department of Labor

Start Date: 2024-08-01

End Date: 2026-07-31

Contract Duration: 729 days

Daily Burn Rate: $22.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD FOR THE TALKING LEAVES JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES

Place of Performance

Location: TAHLEQUAH, CHEROKEE County, OKLAHOMA, 74465

State: Oklahoma Government Spending

Plain-Language Summary

Department of Labor obligated $16.4 million to CHEROKEE NATION for work described as: AWARD FOR THE TALKING LEAVES JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration is 729 days, spanning nearly two years. 3. Services include outreach, admissions, and career transition for the Talking Leaves Job Corps Center. 4. The award was not competitively procured, raising questions about potential value. 5. The contractor, Cherokee Nation, is a significant entity with a broad range of federal contracts. 6. The contract falls under 'Other Technical and Trade Schools' NAICS code. 7. The geographic focus is Oklahoma, where the Job Corps center is located.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for similar Job Corps center operations. The firm-fixed-price structure provides cost certainty for the government. However, the lack of competition makes it difficult to assess if the pricing represents the best possible value for the taxpayer. Further analysis would require understanding the scope of services and the number of participants served to determine cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not available for competition' basis, indicating that a full and open competition was not conducted. This typically occurs when only one responsible source is available or in cases of urgent need. The limited competition means there was no opportunity for multiple bidders to propose solutions, which can impact price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that could arise from a competitive bidding process. The government did not leverage market forces to secure the most economical price.

Public Impact

The primary beneficiaries are students enrolled in the Talking Leaves Job Corps Center, who will receive support services. Services delivered include outreach to potential students, admissions processing, and career transition assistance. The geographic impact is concentrated in Oklahoma, serving the local community around the Job Corps center. Workforce implications include the employment of staff by Cherokee Nation to deliver these services and the development of skills for program participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding limits assurance of best value.
Firm-fixed-price contract may not fully capture efficiencies if scope changes.
Reliance on a single source for critical student support services.

Positive Signals

Award to Cherokee Nation, an experienced tribal organization, suggests potential for effective service delivery.
Focus on career transition services aims to improve participant employment outcomes.
Contract duration provides stability for program operations.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational training and support for disadvantaged youth through the Job Corps program. The market for such services involves educational institutions, non-profits, and tribal organizations that partner with the government. Comparable spending benchmarks would typically be found within the Department of Labor's overall budget for Job Corps centers nationwide, which aims to provide academic, vocational, and social skills training.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. As a sole-source award to a large organization (Cherokee Nation), the direct impact on the small business ecosystem is likely minimal unless Cherokee Nation actively engages small businesses as subcontractors, which is not specified in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the federal contract database, though detailed performance metrics and Inspector General involvement would depend on specific program reviews and audit cycles.

Related Government Programs

Job Corps Program
Department of Labor Training Programs
Federal Vocational Education Contracts
Tribal Government Contracts

Risk Flags

Sole-source award may limit cost savings.
Performance metrics not detailed in award data.
Potential for contractor complacency due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $16.4 million to CHEROKEE NATION. AWARD FOR THE TALKING LEAVES JOB CORPS CENTER WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION.

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 $16.4 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-07-31.

What is the historical spending pattern for the Talking Leaves Job Corps Center and similar facilities?

Analyzing historical spending for the Talking Leaves Job Corps Center specifically is difficult without access to prior contract data for this exact facility. However, the broader Job Corps program, administered by the Department of Labor, has historically received significant federal funding. For example, in recent fiscal years, the program's budget has been in the hundreds of millions of dollars, supporting numerous centers across the country. Spending patterns for individual centers can vary based on size, location, services offered, and participant enrollment. Without specific historical data for this center, it's challenging to establish a precise spending trend or benchmark against past performance.

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

Determining the per-participant cost requires knowing the projected number of participants the Talking Leaves Job Corps Center will serve under this $16.4 million contract over its 729-day duration. The Department of Labor's Job Corps program aims for cost-effectiveness, but per-participant costs can fluctuate significantly between centers due to regional economic factors, the intensity of services provided, and the specific needs of the student population. A comprehensive comparison would necessitate accessing enrollment data and detailed service delivery costs for a range of comparable Job Corps centers to establish a reliable benchmark. This information is not readily available in the provided contract award details.

What is Cherokee Nation's track record in managing federal contracts, particularly in education or workforce development?

Cherokee Nation has a substantial track record of managing federal contracts across various agencies, including significant work with the Department of Labor and other entities involved in health, education, and social services. As a federally recognized tribe, they often administer programs funded by federal grants and contracts, demonstrating experience in compliance, financial management, and program delivery. Their involvement in workforce development and educational initiatives is well-established, often leveraging their unique position to serve tribal members and broader communities. A detailed review of their contract performance history, including any past issues or commendations, would provide further insight into their capability to successfully execute this Job Corps contract.

What are the specific performance metrics and expected outcomes for this contract?

The provided award data does not detail the specific performance metrics or expected outcomes for this contract. Typically, contracts for Job Corps centers include requirements related to student recruitment, retention, academic achievement, vocational training completion, and post-program placement into employment or further education. The Department of Labor would establish Key Performance Indicators (KPIs) that the Cherokee Nation must meet. These metrics are crucial for assessing the contractor's effectiveness and ensuring the program is achieving its goals of preparing young people for successful careers. Without these specific metrics, a thorough evaluation of the contract's success is not possible.

Are there any known risks associated with sole-source awards for essential services like Job Corps operations?

Sole-source awards for essential services like Job Corps operations carry inherent risks. The primary risk is the potential for reduced value for money, as the absence of competition means the government cannot be assured it received the most competitive pricing. There's also a risk of complacency from the contractor, who faces less pressure to innovate or improve efficiency compared to a competitive environment. Furthermore, if the sole-source justification is weak or circumstances change, the government might be locked into a contract that is no longer the best option. Ensuring robust oversight and clear performance standards becomes even more critical in sole-source situations to mitigate these risks.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1605JW-24-R-00003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 17675 S MUSKOGEE AVE, TAHLEQUAH, OK, 74464

Business Categories: Category Business, Government, Native American Tribal Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,130,712

Exercised Options: $18,966,544

Current Obligation: $16,428,190

Actual Outlays: $12,605,921

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline