Department of Labor awards $23M contract for technical and trade school services to Distinction LLC

Contract Overview

Contract Amount: $23,038,958 ($23.0M)

Contractor: Distinction LLC

Awarding Agency: Department of Labor

Start Date: 2025-03-01

End Date: 2027-03-31

Contract Duration: 760 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ST. LOUIS JCC OA/CTS

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63120

State: Missouri Government Spending

Plain-Language Summary

Department of Labor obligated $23.0 million to DISTINCTION LLC for work described as: ST. LOUIS JCC OA/CTS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to control costs for the government. 3. The contract duration of approximately 760 days provides a medium-term service commitment. 4. The North American Industry Classification System (NAICS) code 611519 indicates specialized technical and trade instruction. 5. The award amount of $23,038,958.45 represents a significant investment in workforce development or training. 6. The contract is managed by the Office of the Assistant Secretary for Administration and Management. 7. The geographic location of the contractor is Missouri.

Value Assessment

Rating: good

The contract value of $23,038,958.45 for a period of approximately 2.1 years appears to be within a reasonable range for specialized technical and trade school services, especially considering the firm-fixed-price structure which shifts risk to the contractor. Benchmarking against similar large-scale federal training contracts would provide a more precise value-for-money assessment. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive award process is a positive indicator.

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 a bid. The presence of 9 bidders suggests a healthy level of competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions, benefiting the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the price and ensured the government received the best value for its investment in technical and trade school services.

Public Impact

The primary beneficiaries are likely individuals seeking specialized technical and trade skills, potentially enhancing their employability. The services delivered will focus on technical and trade instruction, aligning with workforce development goals. The geographic impact is primarily centered in Missouri, where the contractor is located, though the ultimate beneficiaries could be nationwide. Workforce implications include the potential for upskilling and reskilling of individuals, contributing to a more skilled labor force.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training objectives are not clearly defined and managed.
Ensuring the quality and relevance of the technical and trade instruction provided.
Monitoring contractor performance to ensure adherence to the firm-fixed-price agreement and delivery standards.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract type helps control costs and manage budget predictability.
The contract duration allows for sustained service delivery and program development.

Sector Analysis

The contract falls within the Education and Training sector, specifically focusing on technical and trade schools. This sector is crucial for developing a skilled workforce capable of meeting industry demands. Federal spending in this area often supports workforce development initiatives, vocational training, and specialized skill acquisition. Comparable spending benchmarks would involve analyzing other federal contracts for similar educational services, vocational training programs, and technical instruction across various agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false) and there were 9 bidders in total. This suggests that the competition was likely dominated by larger firms. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem. Further investigation into subcontracting requirements would be necessary to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures will be tied to the terms of the firm-fixed-price contract, including delivery schedules and service quality. Transparency is generally facilitated through contract award databases, though specific performance reporting details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Labor Workforce Development Programs
Federal Vocational Training Initiatives
Technical Education Grants
Skills Training Contracts

Risk Flags

Potential for training quality not meeting industry standards.
Risk of outdated curriculum or instructional methods.
Dependence on contractor's ability to attract and retain qualified instructors.
Ensuring equitable access to training opportunities for intended beneficiaries.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.0 million to DISTINCTION LLC. ST. LOUIS JCC OA/CTS

Who is the contractor on this award?

The obligated recipient is DISTINCTION 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: 2025-03-01. End: 2027-03-31.

What is the track record of Distinction LLC in delivering similar technical and trade school services to the federal government?

Information regarding Distinction LLC's specific track record in delivering technical and trade school services to the federal government is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and any documented successes or challenges in fulfilling similar federal contracts. Understanding their experience with government contracting regulations, reporting requirements, and the specific educational domains relevant to this award is crucial for evaluating their capability and reliability. Without this historical data, it is difficult to definitively assess their past performance in a federal context.

How does the awarded amount of $23,038,958.45 compare to similar federal contracts for technical and trade education?

The awarded amount of $23,038,958.45 for approximately 2.1 years of service represents a significant investment. To benchmark this value effectively, one would need to compare it against other federal contracts for similar technical and trade education services, considering factors such as the scope of training, number of individuals served, duration, and geographic reach. For instance, if similar contracts for nationwide training programs serving thousands of individuals are in the range of tens of millions, this award might be considered competitive. Conversely, if smaller, more localized training initiatives are awarded at a fraction of this cost, it could warrant further scrutiny. The firm-fixed-price nature suggests cost control, but the ultimate value depends on the quality and impact of the training delivered.

What are the primary risks associated with this firm-fixed-price contract for technical and trade school services?

The primary risks associated with this firm-fixed-price contract revolve around ensuring the quality and relevance of the training provided. While the fixed price shifts financial risk to the contractor, the government still bears the risk of receiving substandard or outdated instruction. If the curriculum does not align with current industry needs or if the instructors lack the necessary expertise, the intended workforce development outcomes may not be achieved. Another risk is potential contractor underperformance or failure to meet delivery milestones, which could disrupt training programs. Effective oversight and performance monitoring are critical to mitigate these risks and ensure the government receives the intended value.

How effective is the 'full and open competition' approach likely to be in ensuring program effectiveness for this contract?

The 'full and open competition' approach is generally effective in promoting program effectiveness by fostering a competitive environment that encourages contractors to offer high-quality services at competitive prices. With 9 bidders, the Department of Labor likely received a range of proposals, allowing them to select the contractor best positioned to meet the program's objectives. This competitive pressure incentivizes Distinction LLC to deliver effective training to maintain its reputation and secure future contracts. However, program effectiveness ultimately depends on the specific performance standards outlined in the contract and the rigor of the government's oversight in monitoring whether those standards are met.

What are the historical spending patterns of the Department of Labor in the technical and trade education sector?

Analyzing historical spending patterns of the Department of Labor in the technical and trade education sector would reveal trends in investment, preferred contracting mechanisms, and the types of services most frequently procured. This data could indicate whether this $23 million award is an outlier, a continuation of a trend, or an expansion of the department's commitment to such services. Understanding past spending levels, the average contract values, and the duration of previous agreements would provide context for the current award. It would also help identify any shifts in strategic priorities or funding allocations towards workforce development and vocational training over time.

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-00004

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 402 E STARLING ST, GREENVILLE, MS, 38701

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $116,534,698

Exercised Options: $45,115,490

Current Obligation: $23,038,958

Actual Outlays: $15,311,949

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline