Department of Labor's $93.7M vocational training contract awarded to UBC National Job Corps Training Fund Inc. shows fair value

Contract Overview

Contract Amount: $93,693,997 ($93.7M)

Contractor: UBC National JOB Corps Training Fund Inc

Awarding Agency: Department of Labor

Start Date: 2018-02-01

End Date: 2023-07-31

Contract Duration: 2,006 days

Daily Burn Rate: $46.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF:CF::IGF

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89119

State: Nevada Government Spending

Plain-Language Summary

Department of Labor obligated $93.7 million to UBC NATIONAL JOB CORPS TRAINING FUND INC for work described as: IGF:CF::IGF Key points: 1. The contract demonstrates a commitment to vocational rehabilitation services, aligning with federal workforce development goals. 2. Competition was robust, suggesting a competitive pricing environment for these essential services. 3. The contract's duration and cost-plus-fixed-fee structure warrant attention for potential cost overruns. 4. Performance context is crucial, as the effectiveness of vocational training directly impacts participant outcomes. 5. This contract positions the Department of Labor as a key player in supporting job readiness and skill development.

Value Assessment

Rating: fair

The contract's total value of $93.7 million over its five-year term suggests a significant investment in vocational training. Benchmarking against similar contracts for large-scale job corps training programs is necessary to fully assess value for money. The cost-plus-fixed-fee (CPFF) pricing structure, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. The fixed fee component needs to be evaluated in relation to the scope of work and expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award suggests that UBC National Job Corps Training Fund Inc. was deemed the most advantageous offer based on the evaluation criteria. The level of competition, while initially broad, resulted in a single awardee, which is typical for complex, large-scale service contracts.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality. This approach ensures that the government receives the best value by considering all qualified sources.

Public Impact

Individuals seeking vocational training and employment services are the primary beneficiaries. The contract delivers essential services aimed at improving workforce readiness and economic self-sufficiency. The geographic impact is focused on Nevada, where the services are being delivered. Workforce implications include the creation of training and support roles within the contractor organization and potential job placements for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-fixed-fee (CPFF) contract type carries inherent risks of cost escalation if not closely monitored.
The long duration of the contract (over 5 years) increases the potential for scope creep or inefficiencies to develop over time.
Reliance on a single awardee for a significant portion of vocational training in a region could pose a risk if performance falters.

Positive Signals

Awarding under full and open competition suggests a thorough vetting process and potential for competitive pricing.
The contract addresses a critical need for vocational rehabilitation services, aligning with federal employment and training mandates.
The fixed fee component provides some level of cost certainty for the government, provided the base cost is well-managed.

Sector Analysis

The vocational rehabilitation services sector is a critical component of the broader workforce development and education industry. This contract falls within the government's efforts to provide specialized training and support to individuals facing barriers to employment. Comparable spending benchmarks would involve analyzing other large federal or state contracts for similar job training and rehabilitation programs, considering factors like participant numbers, service intensity, and geographic scope.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, UBC National Job Corps Training Fund Inc., is likely a larger entity, and its engagement with the small business ecosystem would depend on its own procurement practices for goods and services needed to fulfill the contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Accountability measures would be embedded in the contract's performance work statement, requiring the contractor to meet specific deliverables and performance standards. Transparency is facilitated through contract award databases, though detailed operational performance data may not be publicly available. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Job Corps National Training Programs
Vocational Rehabilitation State Grants
Federal Workforce Development Initiatives

Risk Flags

Cost-Plus-Fixed-Fee (CPFF) contract type requires diligent cost monitoring.
Long contract duration may increase risk of performance degradation or scope creep.
Reliance on a single awardee for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $93.7 million to UBC NATIONAL JOB CORPS TRAINING FUND INC. IGF:CF::IGF

Who is the contractor on this award?

The obligated recipient is UBC NATIONAL JOB CORPS TRAINING FUND 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 $93.7 million.

What is the period of performance?

Start: 2018-02-01. End: 2023-07-31.

What is the track record of UBC National Job Corps Training Fund Inc. in delivering vocational rehabilitation services?

Information regarding the specific track record of UBC National Job Corps Training Fund Inc. in delivering vocational rehabilitation services under this particular contract is not detailed in the provided data. However, the fact that they were awarded a significant contract under full and open competition suggests they met the government's criteria for capability and past performance. To fully assess their track record, one would need to examine performance reports, client satisfaction surveys, and outcomes data from previous contracts they may have held with the Department of Labor or other federal agencies. A review of any past performance issues or commendations would provide further insight into their reliability and effectiveness in managing large-scale training programs.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar vocational training services?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are difficult to estimate upfront, or when flexibility is needed to adapt to changing circumstances. For vocational training, this structure allows the contractor to cover all allowable costs incurred while performing the work, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer more flexibility but carries a higher risk of cost overruns for the government if costs are not meticulously managed and justified. Conversely, it might be preferred over a cost-plus-incentive-fee (CPIF) contract if performance incentives are less critical than ensuring the service is delivered within a predictable profit margin for the contractor. The government's oversight is crucial in CPFF contracts to ensure costs are reasonable and allocable.

What are the key performance indicators (KPIs) used to measure the success of this vocational training contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for vocational rehabilitation and job training programs often include metrics such as participant completion rates, job placement rates post-training, average wages of placed participants, retention rates in employment, and participant satisfaction. Other relevant KPIs might focus on the development of specific in-demand skills, the number of individuals served, and the cost per participant outcome. The Department of Labor would establish these KPIs in the contract's Performance Work Statement (PWS) to ensure the contractor is meeting objectives related to workforce development and individual success.

What is the historical spending pattern for vocational rehabilitation services by the Department of Labor?

The provided data only pertains to a single contract awarded in 2018. To understand the historical spending pattern for vocational rehabilitation services by the Department of Labor, a broader analysis of federal procurement data would be required. This would involve examining spending across multiple fiscal years, identifying all contracts related to vocational training, rehabilitation, and workforce development, and categorizing them by agency, program, and award type. Such an analysis would reveal trends in overall investment, the prevalence of different contract types, and the distribution of funds among various contractors and service areas. Without this broader dataset, it's impossible to establish a historical spending pattern from this single data point.

Are there any specific risks associated with the geographic focus on Nevada for this contract?

The geographic focus on Nevada for this vocational training contract could present specific risks and opportunities. Risks might include the local labor market conditions, the availability of suitable training facilities and qualified instructors within the state, and the specific needs and challenges faced by the target population in Nevada. For example, if Nevada's economy is heavily reliant on a particular industry that is experiencing a downturn, the demand for certain types of vocational training might be affected. Conversely, a strong focus on a specific region allows for tailored program development that addresses local employer needs and workforce gaps. Effective risk mitigation would involve thorough local market analysis and adaptive program design.

Industry Classification

NAICS: Health Care and Social Assistance › Vocational Rehabilitation Services › Vocational Rehabilitation Services

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: 1630DC-17-R-00014

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6801 PLACID ST, LAS VEGAS, NV, 89119

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $93,693,997

Exercised Options: $93,693,997

Current Obligation: $93,693,997

Actual Outlays: $52,415,767

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline