Labor Department Awards $24.4M Technical Training Contract to Career Systems Development Corp

Contract Overview

Contract Amount: $24,426,199 ($24.4M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2017-06-30

End Date: 2022-09-20

Contract Duration: 1,908 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::CT::IGF IROQUOIS JCC

Place of Performance

Location: MEDINA, ORLEANS County, NEW YORK, 14103

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $24.4 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: IGF::CT::IGF IROQUOIS JCC Key points: 1. Contract awarded to Career Systems Development Corporation for technical and trade school services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial at 1908 days, indicating a long-term need. 4. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control. 5. The award value is $24.4 million, representing significant federal investment in training.

Value Assessment

Rating: fair

The contract value of $24.4 million for technical and trade school services appears within a reasonable range for a multi-year federal training program. Benchmarking against similar contracts for specialized vocational training would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: Taxpayer funds are being used to procure technical and trade school services, aiming to enhance workforce skills. The effectiveness of the training in achieving its objectives will ultimately determine the true taxpayer impact.

Public Impact

Federal investment in vocational training to upskill the workforce. Potential for improved job placement and career advancement for participants. Support for educational institutions providing specialized technical skills. Ensuring the government has access to qualified personnel through training programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts require careful monitoring to ensure cost efficiency.
Long contract duration may require periodic reviews to ensure continued relevance and effectiveness.
Need to verify if the training outcomes align with agency needs and labor market demands.

Positive Signals

Full and open competition suggests a robust and fair procurement process.
The contract aims to address a specific need for technical and trade skills.
Potential for positive impact on workforce development and individual careers.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on educational services. Federal spending in this area often supports workforce development initiatives and specialized training programs to meet government and industry needs.

Small Business Impact

The data indicates that the prime contractor is Career Systems Development Corporation. There is no explicit information provided regarding subcontracting to small businesses. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract's long duration necessitates ongoing oversight to ensure performance standards are met and that the training remains relevant. Regular performance reviews and financial audits are crucial for accountability.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns inherent in Cost Plus contracts.
Risk of training becoming outdated if not regularly updated.
Dependency on a single contractor for a significant training requirement.
Need to ensure effective job placement and skill utilization post-training.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.4 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. IGF::CT::IGF IROQUOIS JCC

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $24.4 million.

What is the period of performance?

Start: 2017-06-30. End: 2022-09-20.

What specific technical and trade skills are being provided under this contract, and how do they align with current labor market demands?

The contract specifies services under NAICS code 611519, 'Other Technical and Trade Schools.' While the exact skills are not detailed, this typically encompasses vocational training in areas like mechanics, electronics, healthcare support, and skilled trades. Alignment with labor market demands would require examining the curriculum and placement rates of program graduates.

What are the key performance indicators (KPIs) for this Cost Plus Incentive Fee contract, and how is performance being measured to determine incentive payouts?

Specific KPIs for this contract are not detailed in the provided data. However, for a CPIF contract, KPIs typically relate to cost savings, schedule adherence, or performance targets. The agency would establish these metrics, and performance against them would trigger incentive fees or penalties, requiring robust monitoring and reporting.

What is the historical performance record of Career Systems Development Corporation with the Department of Labor on similar training contracts?

Information on the historical performance of Career Systems Development Corporation with the Department of Labor is not available in this dataset. A comprehensive review would involve examining past contract performance evaluations, any documented issues or successes, and overall client satisfaction to assess reliability and effectiveness.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL-ETA-16-R-00094

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $36,899,104

Exercised Options: $32,866,639

Current Obligation: $24,426,199

Actual Outlays: $10,620,407

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline