Department of Labor awards $37.3M contract for technical and trade school services to MINACT, INC

Contract Overview

Contract Amount: $37,306,467 ($37.3M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2017-06-01

End Date: 2021-11-22

Contract Duration: 1,635 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF DENISON AWARD

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $37.3 million to MINACT, INC for work described as: IGF::OT::IGF DENISON AWARD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control. 3. Duration of 1635 days indicates a significant, long-term service requirement. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized vocational training. 5. The contract was awarded to MINACT, INC., a single entity. 6. The contract was awarded in the District of Columbia, indicating a specific geographic focus.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contract data. The CPIF structure suggests an attempt to manage costs, but the final price is dependent on actual costs incurred and performance against incentives. The total award amount of $37.3 million over approximately 4.5 years averages to about $8.3 million annually, which needs to be assessed against the scope and quality of the technical and trade school services provided.

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. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders participated, it's unclear if this represents robust competition or if other potential bidders were deterred by contract terms or market conditions.

Taxpayer Impact: A competitive process, even with two bidders, generally leads to better price discovery and potentially more favorable pricing for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely individuals seeking technical and trade skills development through the services provided by MINACT, INC. The contract supports the delivery of vocational training and educational services, contributing to workforce development. The geographic impact is centered in the District of Columbia, where the services are presumably delivered. Workforce implications include potential job creation within MINACT, INC. and its subcontractors, as well as the skilled workforce developed through the training programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and value for money of the training provided.
The CPIF contract type, while incentivizing, can lead to cost overruns if not closely monitored.
Limited information on the specific technical and trade skills being taught hinders a full understanding of the program's relevance to current labor market demands.

Positive Signals

Awarded through full and open competition, indicating an effort to secure the best value.
The contract duration suggests a stable and ongoing need for these services, potentially indicating program success.
The CPIF structure includes incentives, which can drive performance and efficiency if structured appropriately.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The market for such services is driven by workforce development needs, industry demand for skilled labor, and government initiatives to train citizens. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar vocational training programs or educational services provided to government agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false) and the contract was not awarded to a small business (sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The impact on the small business ecosystem would depend on whether MINACT, INC. voluntarily engages small businesses as subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Labor's contracting officers and program managers. Accountability measures are embedded within the CPIF contract structure, which links payment to performance and cost control. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Workforce Investment Act Programs
Department of Labor Training Grants
Federal Student Aid Programs
Vocational Rehabilitation Services

Risk Flags

Potential for cost overruns inherent in CPIF contracts.
Lack of specific performance metrics in provided data.
Limited competition (2 bidders) may impact price discovery.
Geographic limitation to District of Columbia.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $37.3 million to MINACT, INC. IGF::OT::IGF DENISON AWARD

Who is the contractor on this award?

The obligated recipient is MINACT, 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 $37.3 million.

What is the period of performance?

Start: 2017-06-01. End: 2021-11-22.

What specific technical and trade skills are being provided under this contract?

The provided data does not specify the exact technical and trade skills covered by this contract, only that the NAICS code is 611519, which pertains to 'Other Technical and Trade Schools.' This broad classification suggests a range of vocational training programs. To understand the specific skills, one would need to review the contract's Statement of Work (SOW) or performance work statement (PWS). These documents would detail the curriculum, training methodologies, and desired learning outcomes, providing insight into whether the training focuses on areas like IT, advanced manufacturing, healthcare support, or other in-demand trades.

How does the $37.3 million award compare to similar federal contracts for vocational training?

Direct comparison of the $37.3 million award to similar federal contracts requires access to a comprehensive database of vocational training contracts, including their scope, duration, and specific services. Without such data, it's difficult to definitively state if this amount is high or low. However, considering the contract duration of approximately 4.5 years (1635 days), the annual average award is around $8.3 million. This figure needs to be evaluated against the number of individuals trained, the complexity of the skills taught, and the geographic reach. Contracts for large-scale, multi-year national training initiatives might exceed this amount, while smaller, localized programs could be significantly less.

What are the key performance indicators (KPIs) for MINACT, INC. under this CPIF contract?

The provided data does not list the specific Key Performance Indicators (KPIs) for MINACT, INC. Under a Cost Plus Incentive Fee (CPIF) contract, KPIs are crucial as they define the performance targets that, if met or exceeded, trigger incentive payments. These KPIs would typically be outlined in the contract's SOW or PWS and could include metrics such as student completion rates, job placement rates post-training, student satisfaction scores, adherence to training schedules, and achievement of specific skill certifications. The effectiveness of the incentive fee structure hinges on the clarity, measurability, and relevance of these KPIs to the overall program objectives.

What is the track record of MINACT, INC. in delivering government contracts, particularly in education or training?

The provided data identifies MINACT, INC. as the contractor but does not offer details on their past performance or track record with government contracts. A thorough assessment would require searching federal procurement databases (like SAM.gov or FPDS) for previous awards to MINACT, INC., examining their performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and looking for any history of contract disputes, terminations, or significant issues. Understanding their experience in delivering similar educational or training services would be critical to evaluating their capability to successfully execute this $37.3 million Department of Labor contract.

What is the potential risk associated with the Cost Plus Incentive Fee (CPIF) contract type for this service?

The primary risk with a CPIF contract is that while it aims to control costs by sharing savings or overruns with the contractor based on performance incentives, it can still lead to higher-than-expected costs if not managed diligently. The government bears the majority of the cost risk, as the contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance. If the performance targets are poorly defined, or if the contractor focuses on achieving incentives at the expense of quality or true cost efficiency, the overall value for money could be compromised. Effective oversight is essential to ensure costs remain reasonable and performance targets are met.

How does the geographic focus on Washington D.C. (ST: DC, SN: DISTRICT OF COLUMBIA) impact the contract's scope and potential for broader application?

The contract's specific location in Washington D.C. suggests that the training services are intended for residents or individuals within that metropolitan area. This geographic limitation means the direct impact and reach of the program are confined to D.C. It also implies that the labor market needs and training demands considered were specific to that region. While the contract itself is geographically focused, the *type* of training provided could be replicable in other locations. However, without further information on the program's design and objectives, it's difficult to assess if it serves as a pilot for broader national application or is purely a localized initiative.

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

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Minact Inc

Address: 5220 KEELE ST, JACKSON, MS, 39206

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $52,402,301

Exercised Options: $42,138,796

Current Obligation: $37,306,467

Actual Outlays: $20,371,255

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline