Department of Labor awards $77M contract for Job Corps vocational training in Nevada

Contract Overview

Contract Amount: $76,947,291 ($76.9M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2017-05-30

End Date: 2022-07-31

Contract Duration: 1,888 days

Daily Burn Rate: $40.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT TO OPERATE THE SIERRA NEVADA JOB CORPS CENTER AND PROVIDE OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89506

State: Nevada Government Spending

Plain-Language Summary

Department of Labor obligated $76.9 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT TO OPERATE THE SIERRA NEVADA JOB CORPS CENTER AND PROVIDE OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. Contract focuses on vocational training for youth aged 16-24. 2. Services include outreach, admissions, and career transition. 3. The contract was awarded through full and open competition. 4. The contractor, Management & Training Corporation, has experience in similar programs. 5. The contract duration is over five years, indicating a significant commitment. 6. The award type is Cost Plus Incentive Fee, suggesting performance-based incentives. 7. The geographic focus is Nevada, specifically the Sierra Nevada region.

Value Assessment

Rating: good

The contract value of $76.9 million over approximately five years suggests a substantial investment in youth vocational training. Benchmarking this against similar Job Corps center operations would provide a clearer picture of value for money. The Cost Plus Incentive Fee (CPIF) structure allows for cost savings to be shared, incentivizing efficiency. Without specific performance metrics and outcomes, a definitive value assessment is challenging, but the duration and scope indicate a significant operational commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to compete for this work. The presence of three bidders (no=3) suggests a reasonable level of competition for this specialized service. This competitive process is generally expected to drive better pricing and service quality as contractors vie for the award.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it helps ensure that the government is obtaining services at a fair market price, reducing the risk of overpayment.

Public Impact

Young adults aged 16-24 in Nevada will benefit from vocational training and career services. The program aims to equip participants with skills for employment. Services include outreach to identify eligible youth, admissions processing, and support for career transitions. The contract supports workforce development initiatives in the Sierra Nevada region of Nevada. Successful participants are expected to gain pathways to higher education or employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the Cost Plus Incentive Fee structure if not managed tightly.
Ensuring consistent quality of training and placement services across the contract duration.
Measuring the long-term employment and wage outcomes for participants is crucial for program success.

Positive Signals

Full and open competition suggests a robust selection process.
The contractor has experience in operating similar training programs.
The contract duration of over five years indicates a stable program environment.
Incentive fee structure can drive performance and efficiency.

Sector Analysis

The vocational training sector is critical for workforce development, providing essential skills to individuals seeking employment or career advancement. Job Corps is a significant federal program within this sector, aimed at disadvantaged youth. This contract represents a substantial investment in operating a key facility within this national program. Comparable spending benchmarks would involve looking at other Job Corps center contracts and similar large-scale vocational training initiatives funded by federal or state governments.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a large contract for operating a Job Corps center, it is possible that the prime contractor may engage small businesses for specific services, but this is not explicitly detailed. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management. The Cost Plus Incentive Fee structure implies performance monitoring to ensure that incentive targets are met. Regular reporting from the contractor on program operations, participant outcomes, and financial expenditures would be expected. The Inspector General's office within the Department of Labor would likely have jurisdiction for audits and investigations.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Youth Training Programs
Vocational Rehabilitation Services

Risk Flags

Contract duration exceeds 5 years.
Cost Plus Incentive Fee structure requires careful monitoring of performance metrics.
Potential for performance variability among participants in vocational training programs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $76.9 million to MANAGEMENT & TRAINING CORPORATION. IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT TO OPERATE THE SIERRA NEVADA JOB CORPS CENTER AND PROVIDE 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 $76.9 million.

What is the period of performance?

Start: 2017-05-30. End: 2022-07-31.

What is the historical spending pattern for operating the Sierra Nevada Job Corps Center?

The provided data reflects the initial contract award for operating the Sierra Nevada Job Corps Center, valued at approximately $76.9 million with a duration from May 30, 2017, to July 31, 2022 (1888 days). This represents the primary federal investment for this period. To understand historical spending patterns, one would need to examine prior contracts for this specific center, if any existed, or compare this award to the average cost of operating other Job Corps centers nationally. Without prior contract data for this specific location, this award serves as the baseline for the analyzed period. The 'br' field shows 40756, which might represent a previous baseline or budget figure, but its exact meaning in relation to historical spending is unclear without further context.

How does the cost per participant compare to other Job Corps centers?

The provided data does not include the number of participants served by this contract, making it impossible to calculate a precise cost per participant. To perform this comparison, one would need access to participant enrollment numbers, completion rates, and the total operational costs for the contract period. Benchmarking against other Job Corps centers would require aggregating similar data across multiple centers and calculating an average cost per participant. Factors such as the cost of living in the region, the specific training programs offered, and the intensity of services can influence per-participant costs, so direct comparisons should account for these variables.

What are the key performance indicators (KPIs) tied to the incentive fee structure?

The data indicates the contract type is 'COST PLUS INCENTIVE FEE' (pt: COST PLUS INCENTIVE FEE), which means that the contractor is incentivized to meet or exceed certain performance targets. However, the specific Key Performance Indicators (KPIs) are not detailed in the provided data. Typically, for Job Corps contracts, these KPIs would relate to student performance, such as on-time graduation rates, attainment of industry-recognized credentials, job placement rates within a specified timeframe after completion, and post-placement wage levels. The incentive fee would be adjusted based on the contractor's achievement against these predefined metrics.

What is the track record of Management & Training Corporation (MTC) in operating Job Corps centers?

Management & Training Corporation (MTC) is a known operator of Job Corps centers and other correctional and workforce training facilities. While this specific data does not detail MTC's performance history, the company generally has extensive experience in managing such programs. A comprehensive assessment of their track record would involve reviewing past performance evaluations, contract awards and terminations, and any documented issues or successes across their portfolio of managed centers. Their continued ability to win competitive contracts suggests a generally satisfactory performance history, but a deeper dive into specific outcomes and client feedback would be necessary for a full evaluation.

What is the risk associated with the 'Other Technical and Trade Schools' NAICS code (611519)?

The NAICS code 611519, 'Other Technical and Trade Schools,' encompasses a broad range of vocational and trade education providers. The risk associated with this classification for a Job Corps contract is generally moderate. Key risks include ensuring the quality and relevance of the training provided to meet current labor market demands, maintaining adequate student enrollment and completion rates, and managing operational costs effectively. The specific risks are highly dependent on the contractor's management capabilities and the program's design, rather than the NAICS code itself. The Cost Plus Incentive Fee structure aims to mitigate some performance-related risks by incentivizing the contractor.

How does the contract duration (1888 days) impact program stability and cost-effectiveness?

A contract duration of 1888 days (approximately 5.17 years) provides a significant period for program stability and operational continuity. This extended timeframe allows the contractor, Management & Training Corporation, to implement long-term strategies, build experienced staff teams, and establish effective relationships with local employers and community partners. Stability reduces the disruption and costs associated with frequent contract transitions. From a cost-effectiveness perspective, a longer duration can allow for economies of scale and the amortization of startup costs over a larger operational base, potentially leading to better value for the government and participants, provided performance targets are met.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL-ETA-16-R-00050

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PL DR STE 100, 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: $77,543,775

Exercised Options: $77,543,775

Current Obligation: $76,947,291

Actual Outlays: $44,330,208

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $86,712

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline