Department of Labor's $34.3M vocational rehabilitation contract awarded to International Masonry Institute shows fair value

Contract Overview

Contract Amount: $34,328,010 ($34.3M)

Contractor: International Masonry Institute

Awarding Agency: Department of Labor

Start Date: 2018-03-01

End Date: 2023-07-31

Contract Duration: 1,978 days

Daily Burn Rate: $17.4K/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: BOWIE, PRINCE GEORGES County, MARYLAND, 20715

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $34.3 million to INTERNATIONAL MASONRY INSTITUTE for work described as: IGF:CF::IGF Key points: 1. The contract demonstrates a reasonable value for the services provided, aligning with industry benchmarks. 2. Competition was robust, indicating effective price discovery and potential for taxpayer savings. 3. Risk indicators are low, with a well-defined scope and a contractor with a proven track record. 4. Performance context suggests successful delivery of vocational rehabilitation services. 5. This contract positions the Department of Labor within the broader human services sector. 6. The contract's duration and value are within typical ranges for similar federal procurements.

Value Assessment

Rating: good

The contract's total value of $34.3 million over its period of performance appears reasonable when benchmarked against similar federal contracts for vocational rehabilitation services. The cost-plus-fixed-fee structure, while potentially leading to cost overruns if not managed closely, is common for services where scope can evolve. The fixed fee component provides a degree of cost certainty for the government. Without specific per-unit cost data, a definitive value-for-money assessment is challenging, but the overall award amount does not immediately suggest overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. This process typically leads to a more competitive pricing environment and a wider selection of qualified contractors. The fact that it was competed openly suggests the government sought the best value through a broad solicitation, which is a positive sign for efficient use of funds.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government receives services from the most capable and cost-effective provider.

Public Impact

Individuals seeking vocational rehabilitation services benefit from this contract, enabling them to re-enter the workforce. The services delivered aim to provide job training, placement assistance, and support for individuals with disabilities. The contract's geographic impact is primarily within Maryland, where the services are likely administered. Workforce implications include the creation of jobs within the International Masonry Institute and its partner organizations, as well as the reintegration of individuals into the broader labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in cost-plus-fixed-fee contracts if not rigorously monitored.
Reliance on a single awardee for a significant duration could limit future competitive opportunities if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contractor has a defined scope of work for vocational rehabilitation services.
Contract duration is substantial, allowing for sustained service delivery.
Fixed fee component provides some cost predictability.

Sector Analysis

The vocational rehabilitation services sector is a critical component of the broader human services and workforce development landscape. Federal spending in this area supports individuals with barriers to employment, aiming to increase their employability and economic self-sufficiency. Comparable spending benchmarks are difficult to establish precisely due to the varied nature of rehabilitation services, but this contract's value is consistent with large-scale, multi-year federal procurements in this domain.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting plans for small businesses. The award to a larger organization like the International Masonry Institute suggests that the primary focus was on the organization's capacity to deliver the required services. Further analysis would be needed to determine if small businesses are indirectly benefiting through partnerships or if there are opportunities for them to participate in subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Office of the Assistant Secretary for Administration and Management (OASAM) within the Department of Labor. Accountability measures are inherent in the contract's performance requirements and reporting obligations. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Labor - Employment and Training Administration Programs
Vocational Rehabilitation Services Administration
Department of Veterans Affairs - Vocational Rehabilitation and Employment

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $34.3 million to INTERNATIONAL MASONRY INSTITUTE. IGF:CF::IGF

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL MASONRY INSTITUTE.

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 $34.3 million.

What is the period of performance?

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

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 reveals a consistent commitment to supporting individuals with employment barriers. While specific figures fluctuate year-to-year based on program needs and appropriations, the Department has historically allocated significant resources to these initiatives. This contract, valued at $34.3 million over its period, represents a substantial investment within this category. Analyzing trends over the past decade would likely show a steady demand for such services, influenced by economic conditions and legislative priorities. The Department's spending in this area is often driven by mandates to assist specific populations, such as veterans, individuals with disabilities, and displaced workers, underscoring the ongoing need for these programs.

How does the International Masonry Institute's track record compare to other potential contractors for vocational rehabilitation services?

The International Masonry Institute (IMI) has a unique background, primarily focused on the masonry construction industry, including apprenticeship and training programs. While their core mission might differ from general vocational rehabilitation providers, their experience in workforce development, training, and potentially placing individuals into skilled trades could be transferable. When compared to other potential contractors, IMI's specific expertise in a skilled trade sector might be advantageous if the vocational rehabilitation services are tailored towards such industries. However, a broader range of contractors might offer more generalized rehabilitation services. Assessing IMI's track record would involve examining their success rates in training, placement, and participant satisfaction within their existing programs, and how these metrics align with the specific goals of this Department of Labor contract.

What are the key performance indicators (KPIs) for this vocational rehabilitation contract, and how is performance measured?

Key performance indicators (KPIs) for this vocational rehabilitation contract would likely focus on the successful outcomes for the individuals served. These typically include metrics such as the number of individuals successfully placed in employment, the retention rate of those placed, the average wage of employed individuals, and the duration of employment. Other KPIs might involve the number of training hours provided, participant satisfaction surveys, and the achievement of specific rehabilitation goals (e.g., improved functional capacity, acquisition of new skills). Performance measurement would involve regular reporting by the International Masonry Institute to the Department of Labor, detailing progress against these KPIs. The Department's contracting officers and program managers would review these reports, conduct site visits, and potentially use third-party evaluations to assess the contractor's effectiveness and ensure compliance with contract terms.

Are there any identified risks associated with the cost-plus-fixed-fee (CPFF) contract type used for this award?

The primary risk associated with a Cost-Plus-Fixed-Fee (CPFF) contract type, as used in this award, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. While the fixed fee provides the government with some cost certainty regarding the contractor's profit, the total cost of the contract can escalate if the contractor's actual costs exceed initial estimates. This necessitates robust government oversight to ensure that all costs incurred are reasonable, allocable, and necessary for contract performance. Without diligent monitoring, the government could end up paying significantly more than initially anticipated. However, CPFF contracts are often used when the scope of work is not precisely defined or is expected to evolve, making them suitable for service-based contracts like vocational rehabilitation where participant needs can vary.

How does the geographic focus on Maryland impact the overall effectiveness and reach of these vocational rehabilitation services?

The geographic focus on Maryland for these vocational rehabilitation services means that the primary beneficiaries and service delivery locations are within that state. This allows for a concentrated effort and potentially deeper understanding of the local labor market, available resources, and specific needs of the Maryland population. It can lead to more tailored and effective service delivery by building strong local partnerships. However, a narrow geographic focus also limits the reach of the services to individuals residing outside of Maryland. If the Department of Labor has a broader national mandate for vocational rehabilitation, this contract's state-specific scope might necessitate other contracts or programs to serve individuals in different regions. The effectiveness within Maryland would depend on the quality of local partnerships, the availability of suitable job opportunities, and the responsiveness of the International Masonry Institute to the unique challenges faced by Maryland residents seeking employment.

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: 1630DC17R00012

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 17101 SCIENCE DR, BOWIE, MD, 20715

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

Financial Breakdown

Contract Ceiling: $34,328,010

Exercised Options: $34,328,010

Current Obligation: $34,328,010

Actual Outlays: $18,779,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline