Department of Labor's $31.9M vocational rehabilitation contract awarded to UAW-Labor Employment and Training Corporation

Contract Overview

Contract Amount: $31,910,118 ($31.9M)

Contractor: UAW- Labor Employment and Training Corporation

Awarding Agency: Department of Labor

Start Date: 2018-03-01

End Date: 2023-07-31

Contract Duration: 1,978 days

Daily Burn Rate: $16.1K/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: CERRITOS, LOS ANGELES County, CALIFORNIA, 90703

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $31.9 million to UAW- LABOR EMPLOYMENT AND TRAINING CORPORATION for work described as: IGF:CF::IGF Key points: 1. The contract's value of $31.9 million over its duration suggests a significant investment in vocational rehabilitation services. 2. Awarded through full and open competition, this contract indicates a market where multiple vendors could potentially offer these services. 3. The cost-plus-fixed-fee (CPFF) pricing structure warrants scrutiny to ensure cost controls and prevent potential overruns. 4. Performance context is crucial; understanding the specific outcomes and effectiveness of the vocational rehabilitation services delivered is key to assessing value. 5. This contract falls within the broader category of workforce development and social services within the federal spending landscape. 6. The duration of the contract (1978 days) allows for sustained service delivery but also necessitates ongoing performance monitoring.

Value Assessment

Rating: fair

Benchmarking the value of this $31.9 million contract requires detailed comparison with similar vocational rehabilitation service contracts across federal agencies. The CPFF structure, while allowing flexibility, can sometimes lead to higher costs if not managed tightly. Without specific performance metrics and outcome data, it is difficult to definitively assess the value for money. However, the scale of the award suggests a substantial need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that the Department of Labor sought proposals from all responsible sources. The fact that it was competed openly implies that there was a reasonable expectation of multiple bidders, which typically fosters price discovery and can lead to more competitive pricing. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of providers to bid, potentially leading to lower prices and better service quality due to market pressures.

Public Impact

Individuals seeking vocational rehabilitation services, particularly those in California, are the primary beneficiaries. The contract supports the delivery of vocational rehabilitation services aimed at helping individuals with disabilities prepare for and obtain employment. The geographic impact is focused on California, as indicated by the 'SN' field. Workforce implications include the potential employment of trainers, counselors, and support staff by the contractor to deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not rigorously monitored.
Lack of specific performance outcome data makes it difficult to assess the true effectiveness and value delivered.
The long contract duration requires sustained oversight to ensure continued quality and relevance of services.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive bidding process.
The contract addresses a critical need for vocational rehabilitation services, supporting individuals with disabilities.
The contractor, UAW-Labor Employment and Training Corporation, has a stated focus on employment and training, aligning with the contract's purpose.

Sector Analysis

This contract falls within the broader human services and workforce development sector. Federal spending in this area supports programs designed to enhance employability, provide job training, and assist individuals facing barriers to employment. The market for vocational rehabilitation services is diverse, including non-profits, private companies, and labor organizations, all competing for government contracts. Comparable spending benchmarks would involve looking at other Department of Labor contracts for similar services or contracts from agencies like the Department of Veterans Affairs for rehabilitation programs.

Small Business Impact

The data indicates that small business participation (SB) was not a specific set-aside (SB: false). There is no explicit information on subcontracting plans for small businesses. This suggests that the primary focus of this contract was not on direct small business set-asides, and its impact on the small business ecosystem would depend on the contractor's own subcontracting practices, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures would be tied to the contract's performance work statement and deliverables. Transparency is facilitated by the contract award being publicly available, but detailed performance reports and audits would be internal or accessible through specific Freedom of Information Act (FOIA) requests. Inspector General jurisdiction would fall under the Department of Labor's Office of Inspector General.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Rehabilitation Services Administration (RSA) Grants
Department of Veterans Affairs Vocational Rehabilitation and Employment (VR&E) Program
State Vocational Rehabilitation Agencies

Risk Flags

Cost-Plus-Fixed-Fee (CPFF) pricing structure requires careful monitoring to control costs.
Long contract duration necessitates sustained performance oversight.
Lack of detailed performance outcome data hinders immediate value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $31.9 million to UAW- LABOR EMPLOYMENT AND TRAINING CORPORATION. IGF:CF::IGF

Who is the contractor on this award?

The obligated recipient is UAW- LABOR EMPLOYMENT AND 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 $31.9 million.

What is the period of performance?

Start: 2018-03-01. End: 2023-07-31.

What is the track record of UAW-Labor Employment and Training Corporation in delivering vocational rehabilitation services?

Assessing the track record of UAW-Labor Employment and Training Corporation (UAW-LETC) requires examining their past performance on similar federal, state, or private contracts. While the award of this $31.9 million contract suggests they were deemed capable, specific details on their success rates in placing individuals in employment, client satisfaction, and adherence to timelines and budgets on previous projects are crucial. A review of past performance evaluations, any debriefings from prior solicitations, or publicly available reports on their programs would provide a clearer picture of their capabilities and reliability in delivering vocational rehabilitation services.

How does the pricing structure (Cost Plus Fixed Fee) compare to other vocational rehabilitation contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for services where the scope of work may be difficult to define precisely upfront or is expected to evolve. For vocational rehabilitation, this structure allows flexibility in adapting services to individual client needs. However, CPFF contracts can be more expensive for the government compared to fixed-price contracts if costs escalate beyond initial estimates, as the contractor is reimbursed for actual costs plus a fixed fee. Benchmarking against similar federal contracts would reveal if the fixed fee and projected costs are competitive within the market for these types of services, considering the level of risk and complexity involved.

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

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for vocational rehabilitation services, KPIs would include metrics such as the percentage of clients successfully placed in employment, the average duration of employment post-placement, client satisfaction rates, the number of clients completing training programs, and the average wage of placed individuals. The effectiveness of the contract is directly tied to how well these, or similar, KPIs are defined, monitored, and achieved by the UAW-Labor Employment and Training Corporation.

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

Historical spending data for vocational rehabilitation services by the Department of Labor would provide context for the $31.9 million award. Analyzing past expenditures on similar contracts, grants, or programs would reveal trends in funding levels, the types of services procured, and the primary contractors or recipients. This analysis helps determine if the current contract represents an increase, decrease, or stable level of investment in vocational rehabilitation, and whether spending has been consistent or fluctuating over time. Understanding this pattern can inform future budget allocations and procurement strategies.

What is the potential risk associated with the long duration of this contract (1978 days)?

The long duration of this contract, approximately 5.4 years, presents several potential risks. Firstly, the needs of the client population or the job market could change significantly over this period, potentially making the contracted services less relevant or effective. Secondly, maintaining consistent service quality and contractor performance over an extended period requires robust and continuous oversight from the Department of Labor. Lastly, there's a risk of 'contractor drift,' where the contractor's focus may shift away from the original objectives, or inefficiencies may develop over time if performance management is not rigorous.

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-00017

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11010 ARTESIA BLVD STE 100, CERRITOS, CA, 90703

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

Financial Breakdown

Contract Ceiling: $31,910,118

Exercised Options: $31,910,118

Current Obligation: $31,910,118

Actual Outlays: $15,157,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline