Department of Labor awards $32.1M contract for technical and trade school services to Adams and Associates Inc

Contract Overview

Contract Amount: $32,106,948 ($32.1M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2024-11-01

End Date: 2026-11-30

Contract Duration: 759 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ATTERBURY JCC W/ OACTS

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46204

State: Indiana Government Spending

Plain-Language Summary

Department of Labor obligated $32.1 million to ADAMS AND ASSOCIATES INC for work described as: ATTERBURY JCC W/ OACTS Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risk indicators include the definitive contract type and fixed-price structure. 4. Services align with the agency's need for specialized technical training. 5. This contract falls within the broader 'Other Technical and Trade Schools' sector. 6. The contract duration of approximately two years provides a stable period for service delivery.

Value Assessment

Rating: good

The contract value of $32.1 million over two years for technical and trade school services seems within a reasonable range for this type of specialized support. Benchmarking against similar contracts for educational services or workforce development programs would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, without specific details on the services provided and their unit costs, a definitive comparison is 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 11 bidders participating, this suggests a healthy level of competition for the requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions, benefiting the government by ensuring it receives the best value.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged efficient service delivery from the winning bidder.

Public Impact

The primary beneficiaries are likely individuals seeking technical and trade skills development, potentially enhancing their employability. The contract will deliver educational and training services, likely focused on specific vocational areas. The geographic impact is specified as Indiana (IN), suggesting services will be concentrated in that state. Workforce implications include the potential for job creation within the contractor's organization and the upskilling of the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The firm fixed-price contract could lead to scope creep if not managed tightly, potentially increasing costs beyond initial projections.
Reliance on a single contractor for these services could pose a risk if performance issues arise.
The specific technical and trade areas covered are not detailed, which could obscure potential performance gaps.

Positive Signals

Full and open competition with 11 bidders indicates a strong market response and potential for competitive pricing.
The contract duration of over two years provides stability for service delivery and planning.
The firm fixed-price nature shifts cost overrun risk to the contractor, potentially protecting the government's budget.

Sector Analysis

This contract falls within the broader educational services sector, specifically focusing on technical and trade schools. The North American Industry Classification System (NAICS) code 611519, 'Other Technical and Trade Schools,' encompasses institutions that provide vocational and technical training. Spending in this area supports workforce development and specialized skill acquisition. Comparable spending benchmarks would involve analyzing other government contracts for similar vocational training programs or educational support services.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes performance within budget. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

Workforce Investment Act Programs
Job Training and Placement Services
Vocational Rehabilitation Services
Department of Education Grants for Technical Training

Risk Flags

Potential for scope creep in fixed-price contracts.
Contractor performance risk requires diligent oversight.
Lack of specific service details hinders granular value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.1 million to ADAMS AND ASSOCIATES INC. ATTERBURY JCC W/ OACTS

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES INC.

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 $32.1 million.

What is the period of performance?

Start: 2024-11-01. End: 2026-11-30.

What is the track record of Adams and Associates Inc. in performing similar government contracts?

Information regarding the specific track record of Adams and Associates Inc. in performing similar government contracts is not provided in the data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported disputes or terminations. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would be the primary sources for this information. Without this data, it is difficult to gauge their reliability and past success in delivering comparable services to government agencies.

How does the awarded price compare to market rates for similar technical and trade school services?

The provided data does not include specific details about the services rendered or their unit costs, making a direct comparison to market rates challenging. The total contract value of $32.1 million over approximately two years for services in Indiana needs to be broken down by specific training programs, student enrollment numbers, and instructor hours to establish a per-student or per-course cost. Benchmarking against publicly available tuition fees for comparable private vocational schools or costs incurred by other federal agencies for similar training would be necessary to assess if this contract represents good value for money.

What are the primary risks associated with this firm fixed-price contract?

The primary risks associated with a firm fixed-price (FFP) contract, especially for services like technical and trade schools, revolve around potential scope creep and contractor performance. While FFP shifts cost overrun risk to the contractor, it can incentivize them to cut corners on quality or service delivery to maximize profit if not adequately monitored. There's also a risk that the fixed price may not adequately cover unforeseen complexities or changes in requirements, potentially leading to disputes or a contractor's inability to deliver as promised. Effective government oversight and clear performance metrics are crucial to mitigate these risks.

How effective is the competition level in ensuring optimal value for taxpayers?

The contract was awarded under full and open competition with 11 bidders, which is a strong indicator of a competitive environment. A higher number of bidders generally leads to more competitive pricing, as companies vie to win the contract by offering the best value proposition. This level of competition suggests that the Department of Labor likely received a range of proposals and pricing structures, increasing the probability that the selected offer represents a cost-effective solution for taxpayers. The agency's evaluation process would further ensure that the lowest price technically acceptable or best value offer was chosen.

What is the historical spending pattern for similar technical and trade school services by the Department of Labor?

Historical spending data for similar technical and trade school services by the Department of Labor is not included in the provided information. To analyze historical patterns, one would need to examine past contract awards for vocational training, educational support, or workforce development programs managed by the agency. This analysis would involve looking at the frequency of such contracts, their average values, durations, and the contractors typically awarded these agreements. Understanding historical spending can reveal trends, identify potential over-reliance on specific vendors, and inform future budget allocations and procurement strategies.

What are the implications of the 'Other Technical and Trade Schools' NAICS code for this contract?

The classification under NAICS code 611519, 'Other Technical and Trade Schools,' indicates that the contract is for services provided by institutions offering vocational programs that are not elsewhere classified. This broad category can encompass a wide array of specialized training, from automotive repair and culinary arts to advanced manufacturing skills. For this contract, it suggests the Department of Labor is seeking to equip individuals with specific, marketable skills relevant to various industries. The breadth of this code means the exact nature of the training needs careful definition within the contract's statement of work to ensure alignment with agency objectives.

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-24-R-00002

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6151 LAKESIDE DR, RENO, NV, 89511

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: $123,840,302

Exercised Options: $47,744,606

Current Obligation: $32,106,948

Actual Outlays: $22,574,210

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,771,328

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline