Department of Labor's $45.8M Vocational Rehabilitation Services contract awarded to International Union of Painters and Allied Trades

Contract Overview

Contract Amount: $45,816,317 ($45.8M)

Contractor: International Union of Painters and Allied Trades

Awarding Agency: Department of Labor

Start Date: 2018-03-01

End Date: 2023-07-31

Contract Duration: 1,978 days

Daily Burn Rate: $23.2K/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: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $45.8 million to INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES for work described as: IGF:CF::IGF Key points: 1. Contract value of $45.8 million over a 5-year period. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 4. The duration of the contract is 1978 days, suggesting a long-term service requirement. 5. The contract is for Vocational Rehabilitation Services, a critical program for workforce development. 6. The contractor, International Union of Painters and Allied Trades, is a labor union, which is an unusual awardee for this type of service. 7. The contract was awarded to a single vendor, despite full and open competition.

Value Assessment

Rating: fair

The contract's value of $45.8 million over approximately five years for vocational rehabilitation services appears to be within a reasonable range for such a program. However, the Cost Plus Fixed Fee (CPFF) contract type introduces a risk of costs exceeding initial estimates, as the contractor is reimbursed for all allowable costs plus a fixed fee. Benchmarking the per-unit cost of services would be necessary for a more precise value assessment, but the overall expenditure aligns with the scale of federal workforce development initiatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit offers. However, the data indicates only one award was made, which raises questions about the actual level of competition achieved. It is possible that while the solicitation was open, only one bid was deemed responsive or the most advantageous to the government. This could impact price discovery and potentially lead to a less competitive price than if multiple strong bids were received.

Taxpayer Impact: While the solicitation was open, the single award suggests that taxpayers may not have benefited from the full competitive pressure that could have driven down costs. Further analysis into the number of proposals received and the reasons for a single award would be beneficial.

Public Impact

Benefits individuals seeking vocational rehabilitation services, aiding their return to the workforce. Provides essential services that support employment and economic independence for participants. The geographic impact is likely national, given the nature of federal vocational rehabilitation programs. Has implications for the workforce by helping to train and place individuals in jobs. Supports the mission of the Department of Labor in fostering workforce development and economic opportunity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Award to a labor union for vocational rehabilitation services is atypical and warrants scrutiny of performance and cost-effectiveness.
Single award despite 'full and open competition' suggests potential issues with the bidding process or market response.
Long contract duration (1978 days) increases the risk of performance degradation or evolving needs not being met without modification.

Positive Signals

Awarded through 'full and open competition,' theoretically allowing for broad market participation.
The contract addresses a critical need for vocational rehabilitation services, supporting workforce development.
The contractor, International Union of Painters and Allied Trades, has a vested interest in workforce training and development.

Sector Analysis

Vocational rehabilitation services fall within the broader human services and workforce development sector. This sector is characterized by government funding for training, placement, and support services aimed at improving employment outcomes. Federal spending in this area is crucial for addressing unemployment, underemployment, and the needs of individuals with disabilities. The market size for such services is substantial, driven by federal and state mandates. This contract represents a significant investment in supporting individuals' return to gainful employment.

Small Business Impact

There is no indication from the provided data that this contract included small business set-asides or subcontracting requirements. The award to a large labor union suggests that the primary focus was not on engaging small businesses directly as the prime contractor. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. The Inspector General (IG) for the Department of Labor would have jurisdiction to investigate potential fraud, waste, or abuse. Transparency would be enhanced by public reporting of contract performance metrics and financial expenditures, which are not detailed in the provided data.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
Department of Labor Training and Employment Services
Vocational Rehabilitation State Grants
Federal Employment Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Unusual awardee for the service type requires performance scrutiny.
Single award despite open competition warrants investigation into competition level.
Need to verify contractor's specific experience in vocational rehabilitation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $45.8 million to INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES. IGF:CF::IGF

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES.

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 $45.8 million.

What is the period of performance?

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

What is the track record of the International Union of Painters and Allied Trades in delivering vocational rehabilitation services?

The provided data does not offer specific details on the International Union of Painters and Allied Trades' track record in delivering vocational rehabilitation services. While unions are typically involved in representing workers and collective bargaining, their direct experience as prime contractors for comprehensive vocational rehabilitation programs is less common. A thorough review would require examining past performance on similar contracts, client outcomes, and any available performance evaluations. Without this information, it is difficult to assess their capability and past success in this specific service area.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for vocational rehabilitation services?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for all allowable costs plus a predetermined fixed fee, which is not subject to adjustment based on actual costs. For vocational rehabilitation services, this structure can be beneficial when the scope of work is not precisely defined or is expected to evolve. However, it carries a risk of cost escalation if the contractor's costs are higher than anticipated, as the government bears the brunt of these increases. Other contract types, such as Firm-Fixed-Price (FFP), offer greater cost certainty for the government but require a well-defined scope. Performance-Based Contracts (PBCs) could also be considered, linking payment to specific outcomes achieved.

What are the potential risks associated with awarding a vocational rehabilitation contract to a labor union?

Awarding a vocational rehabilitation contract to a labor union like the International Union of Painters and Allied Trades presents unique considerations. Potential risks include a possible conflict of interest if the union's primary focus remains on representing its members rather than serving all eligible beneficiaries impartially. There might also be a learning curve or a lack of established infrastructure for delivering broad-based vocational rehabilitation services compared to specialized service providers. Ensuring equitable service delivery across diverse populations and maintaining objective performance standards would be critical oversight areas.

What does the single award under 'full and open competition' imply for the government's procurement strategy?

A single award under 'full and open competition' can imply several things about the government's procurement strategy. It might suggest that the solicitation was highly specific, and only one offeror met all the stringent requirements. Alternatively, it could indicate a lack of robust market interest or capacity among potential bidders for this particular service and contract structure. From a taxpayer perspective, it raises concerns about whether the government secured the best possible value, as the absence of multiple competitive bids limits the potential for price negotiation and innovation that often arises from a more crowded field.

How does the $45.8 million contract value compare to historical federal spending on vocational rehabilitation?

The $45.8 million contract value represents a significant investment in vocational rehabilitation services over its approximately five-year term. To contextualize this, historical federal spending on vocational rehabilitation is substantial, encompassing various programs administered by the Department of Labor and the Department of Veterans Affairs, as well as state-administered programs funded federally. Annual federal outlays for vocational rehabilitation services can range in the billions of dollars when considering all programs. This specific contract, while large, is one component of the broader federal commitment to assisting individuals in returning to the workforce.

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: 1630DC17R00018

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7230 PARKWAY DR, HANOVER, MD, 21076

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

Financial Breakdown

Contract Ceiling: $45,816,317

Exercised Options: $45,816,317

Current Obligation: $45,816,317

Actual Outlays: $24,286,470

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline