Department of Labor's $56M Job Corps contract awarded to Chugach Education Services for vocational training

Contract Overview

Contract Amount: $56,178,470 ($56.2M)

Contractor: Chugach Education Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2017-04-11

End Date: 2022-06-30

Contract Duration: 1,906 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

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 FOR OPERATING THE INLAND EMPIRE JOB CORPS CENTER.

Place of Performance

Location: SAN BERNARDINO, SAN BERNARDINO County, CALIFORNIA, 92407

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $56.2 million to CHUGACH EDUCATION SERVICES, INC. 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 FOR OPERATING THE INLAND EMPIRE JOB CORPS CENTER. Key points: 1. The contract aims to provide vocational training for youth, addressing a critical need for workforce development. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control and performance. 4. The duration of the contract is over 1900 days, indicating a long-term commitment to the service. 5. The geographic focus is California, potentially impacting a significant number of young individuals in the state. 6. The contractor, Chugach Education Services, Inc., is responsible for operating the Inland Empire Job Corps Center.

Value Assessment

Rating: good

The contract's value of $56.18 million over approximately five years for operating a Job Corps center appears reasonable given the scope of services. Benchmarking against similar Job Corps center contracts would provide a more precise value-for-money assessment. The CPIF contract type allows for performance incentives, which can lead to better outcomes and potentially cost savings if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. This competitive process is designed to ensure fair pricing and the selection of the most capable provider. The number of bidders (7) suggests a healthy level of interest and competition for this service.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and ensuring that the government receives the best possible value for its investment in youth vocational training.

Public Impact

Young individuals aged 16-24 in California will benefit from vocational training and career development services. The contract supports the delivery of essential job training programs aimed at improving employability. The geographic impact is concentrated in California, specifically the Inland Empire region. Workforce implications include the potential for increased skilled labor in the region and improved economic opportunities for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not closely monitored.
Ensuring consistent quality of training across all programs and instructors is crucial for participant success.
Measuring long-term employment outcomes and return on investment for the training provided requires robust data collection.

Positive Signals

Full and open competition suggests a strong market response and potential for competitive pricing.
The long contract duration provides stability for both the contractor and the program participants.
The CPIF structure incentivizes performance, potentially leading to higher quality service delivery.

Sector Analysis

The vocational training sector, particularly for youth, is a critical component of the broader education and workforce development industry. Government contracts for operating Job Corps centers represent a significant portion of federal spending in this area. This contract fits within the broader landscape of federal efforts to address youth unemployment and skill gaps, comparable to other workforce development initiatives and educational service contracts.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's utilization plans and performance. The absence of explicit set-asides means that the primary focus was on full and open competition for the prime contract.

Oversight & Accountability

Oversight of this contract would typically fall under the Department of Labor's Inspector General and relevant program offices. Accountability measures are embedded within the Cost Plus Incentive Fee structure, which ties contractor payment to performance metrics. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be less public.

Related Government Programs

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

Risk Flags

Potential for cost escalation in CPIF contracts.
Ensuring quality and relevance of training programs.
Measuring long-term participant success and program ROI.
Dependence on contractor's historical performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $56.2 million to CHUGACH EDUCATION SERVICES, INC.. IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT FOR OPERATING THE INLAND EMPIRE JOB CORPS CENTER.

Who is the contractor on this award?

The obligated recipient is CHUGACH EDUCATION SERVICES, 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 $56.2 million.

What is the period of performance?

Start: 2017-04-11. End: 2022-06-30.

What is the historical performance of Chugach Education Services, Inc. in operating similar government contracts, particularly Job Corps centers?

Assessing the historical performance of Chugach Education Services, Inc. is crucial for understanding their capability to successfully operate the Inland Empire Job Corps Center. A review of past contracts, including any previous Job Corps center operations, would reveal their track record regarding participant outcomes, cost management, and compliance. Data from contract performance reports, past performance evaluations, and any documented disputes or corrective actions would provide valuable insights. Without specific historical performance data readily available in this dataset, a deeper dive into federal procurement databases and agency performance reviews would be necessary to form a comprehensive assessment of their reliability and effectiveness as a contractor in this domain.

How does the awarded amount of $56.18 million compare to the operational costs of similar Job Corps centers in other regions?

Comparing the $56.18 million award to similar Job Corps centers requires access to a benchmark of operational costs across different geographic locations and center sizes. Factors such as local labor costs, cost of living, student demographics, and the specific mix of training programs offered can significantly influence operational expenses. A higher or lower cost per student or per center, when adjusted for these variables, could indicate whether this contract represents exceptional value, is priced competitively, or is potentially over/under-funded. Without a detailed comparative analysis of operational expenditures for comparable centers, it is difficult to definitively assess the value-for-money aspect of this specific award based solely on the total contract amount.

What are the key performance indicators (KPIs) tied to the incentive fee in this Cost Plus Incentive Fee (CPIF) contract, and how are they measured?

The specific Key Performance Indicators (KPIs) for the incentive fee in this CPIF contract are not detailed in the provided data. Typically, for Job Corps contracts, KPIs might include metrics such as student enrollment rates, completion rates, job placement rates, starting wages of placed graduates, and employer satisfaction. The incentive fee structure would be designed to reward the contractor for exceeding targets in these areas. The measurement of these KPIs would involve rigorous data collection and reporting by the contractor, subject to government verification and oversight. Understanding these specific KPIs and their measurement methodologies is essential for evaluating how effectively the contract incentivizes desired outcomes and ensures accountability.

What is the projected impact of this contract on youth employment and skill development in the Inland Empire region of California?

This contract is expected to have a positive impact on youth employment and skill development in the Inland Empire by providing vocational training to individuals aged 16-24. The Job Corps program aims to equip participants with in-demand skills, leading to improved employability and higher earning potential. The success of this impact is contingent on the quality of training, the relevance of the vocational programs to local labor market needs, and the effectiveness of job placement services. A successful program could contribute to reducing youth unemployment rates in the region and supplying a more skilled workforce to local industries, thereby fostering economic growth.

What are the potential risks associated with a Cost Plus Incentive Fee (CPIF) contract for operating a Job Corps center, and how are they mitigated?

A primary risk with CPIF contracts is the potential for cost overruns if the government does not adequately monitor expenditures and contractor performance. While the incentive fee aims to control costs and reward efficiency, there's still a possibility that costs could escalate beyond initial projections. Mitigation strategies include robust government oversight, detailed cost accounting, regular performance reviews, and clearly defined incentive targets that align with program goals. The government must actively manage the contract, ensuring that the contractor is meeting performance expectations and managing resources effectively to achieve the desired outcomes within the negotiated fee structure.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL-ETA-16-R-00008

Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Government Solutions, LLC

Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $79,827,055

Exercised Options: $79,093,958

Current Obligation: $56,178,470

Actual Outlays: $29,043,740

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $92,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline