Department of Labor awards $66.6M contract for Hawaii Job Corps Center operations to Management & Training Corporation

Contract Overview

Contract Amount: $66,607,937 ($66.6M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2017-03-24

End Date: 2021-04-30

Contract Duration: 1,498 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF CONTRACT TO OPERATE HAWAII JOB CORPS CENTER AND PROVIDE OUTREACH ADMISSIONS/CAREER TRANSITION SERVICES.

Place of Performance

Location: WAIMANALO, HONOLULU County, HAWAII, 96795

State: Hawaii Government Spending

Plain-Language Summary

Department of Labor obligated $66.6 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::CT::IGF CONTRACT TO OPERATE HAWAII JOB CORPS CENTER AND PROVIDE OUTREACH ADMISSIONS/CAREER TRANSITION SERVICES. Key points: 1. The contract, valued at $66.6 million, covers operations, outreach, admissions, and career transition services for the Hawaii Job Corps Center. 2. Management & Training Corporation, the incumbent, secured this award through full and open competition. 3. The contract's firm fixed-price structure aims to control costs, but the long duration could present risks. 4. The sector involves educational and vocational training services, a critical area for workforce development.

Value Assessment

Rating: good

The contract's value of $66.6 million over approximately 4 years appears reasonable for operating a Job Corps center, considering the scope of services. Benchmarking against similar large-scale training and facility management contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made through full and open competition, indicating a robust price discovery process. This method allows multiple qualified contractors to bid, fostering competition and potentially leading to better pricing for the government.

Taxpayer Impact: The competitive bidding process likely ensured a fair price, maximizing the value of taxpayer funds allocated to workforce development and job training services in Hawaii.

Public Impact

Provides essential job training and career services to individuals in Hawaii, enhancing workforce skills. Supports economic development by preparing participants for employment in various sectors. The contract ensures the continued operation of a vital federal program aimed at improving employment outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (approx. 4 years) may lead to cost overruns if not managed effectively.
Potential for scope creep or changes in service requirements over the contract period.
Reliance on a single contractor for critical services could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type helps control costs.
Incumbent contractor likely has established processes and expertise.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' (NAICS 611519) sector, which includes institutions providing vocational and technical training. Spending in this sector is driven by federal workforce development initiatives and educational grants.

Small Business Impact

The data indicates the awardee is Management & Training Corporation, a large business. There is no specific information provided regarding subcontracting opportunities for small businesses within this contract.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this contract. Standard oversight mechanisms for federal contracts, including performance monitoring and financial reviews, would apply.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Contract duration
Potential for cost increases over time
Reliance on incumbent
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $66.6 million to MANAGEMENT & TRAINING CORPORATION. IGF::CT::IGF CONTRACT TO OPERATE HAWAII JOB CORPS CENTER AND PROVIDE OUTREACH ADMISSIONS/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 $66.6 million.

What is the period of performance?

Start: 2017-03-24. End: 2021-04-30.

What is the cost-effectiveness of the services provided compared to alternative training programs or direct employment support?

Assessing cost-effectiveness requires comparing the per-participant cost and employment outcomes of this Job Corps center against other federal or state workforce development programs. Factors like job placement rates, average wage increases, and long-term employment retention are crucial metrics. Without specific performance data, it's difficult to definitively gauge cost-effectiveness beyond the contract's pricing structure.

What are the key performance indicators (KPIs) used to measure the success of the contractor in delivering training and transition services?

Key performance indicators likely include metrics such as student enrollment and retention rates, completion of training programs, job placement rates, starting wages of placed graduates, and employer satisfaction. The Department of Labor would typically establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs to ensure the contractor meets program objectives and delivers value.

How does the contractor's performance under this contract compare to their performance on similar contracts with other federal agencies or state governments?

Comparing the contractor's performance across different contracts requires access to past performance evaluations and contract administration records. Management & Training Corporation operates numerous Job Corps centers and other training programs. A comprehensive review would involve analyzing their track record for meeting performance targets, managing budgets, and adhering to regulatory requirements in similar roles.

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-00081

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $69,793,565

Exercised Options: $69,793,565

Current Obligation: $66,607,937

Actual Outlays: $35,434,698

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $462,578

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline