Department of Labor's $32.7M career transition services contract awarded to Adams and Associates Inc

Contract Overview

Contract Amount: $32,657,111 ($32.7M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2018-02-01

End Date: 2022-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF DELAWARE VALLEY JCC WITH CAREER TRANSITION SERVICES.

Place of Performance

Location: CALLICOON, SULLIVAN County, NEW YORK, 12723

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $32.7 million to ADAMS AND ASSOCIATES INC for work described as: IGF::OT::IGF DELAWARE VALLEY JCC WITH CAREER TRANSITION SERVICES. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risk. 3. The duration of 1460 days (4 years) indicates a significant, long-term commitment for these services. 4. The contract was awarded to a single contractor, Adams and Associates Inc., for the entire duration. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools, suggesting a focus on vocational training. 6. The contract's performance period spans from February 2018 to January 2022. 7. The contract was awarded by the Office of the Assistant Secretary for Administration and Management (OASAM) within the Department of Labor.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without detailed cost breakdowns and performance metrics. The Cost Plus Incentive Fee structure means the final cost could vary based on performance. Comparing it to similar career transition services contracts would require access to more granular data on service scope and outcomes. However, the total award amount of over $32 million over four years suggests a substantial investment in these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access for a wide range of contractors, the specific number of bidders (5) provides some indication of market interest and potential price discovery.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors vying for the award.

Public Impact

The primary beneficiaries are likely individuals requiring career transition services, potentially including transitioning military personnel, displaced workers, or individuals seeking new vocational skills. The services delivered are expected to include career counseling, job placement assistance, training, and other support mechanisms to help individuals re-enter the workforce. The contract is associated with New York (ST: NY, SN: NEW YORK), suggesting a primary geographic focus for service delivery. The contract's nature implies potential workforce implications, aiming to equip individuals with skills for re-employment and contribute to the local and national labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee (CPIF) contracts can lead to cost overruns if not managed carefully, as the contractor is reimbursed for costs plus a fee that can increase with performance.
The lack of specific performance metrics in the provided data makes it difficult to assess the true value for money and effectiveness of the services provided.
The contract's duration of four years might limit flexibility to adapt to changing workforce needs or to incorporate more innovative service providers if performance is suboptimal.

Positive Signals

Awarded through full and open competition, which typically fosters a competitive environment and can lead to better pricing and service quality.
The contract aims to provide essential career transition services, addressing a critical need for workforce development and support.
The specific NAICS code suggests a focus on specialized training, potentially leading to improved skills and employability for participants.

Sector Analysis

The contract falls within the broader 'Educational Services' sector, specifically under technical and trade schools. This sector is crucial for workforce development, providing specialized training to meet industry demands. The market for career transition and vocational training services is significant, driven by economic shifts, technological advancements, and the need for continuous reskilling. This contract represents a substantial government investment in human capital development within this sector.

Small Business Impact

The provided data indicates that small business participation (SB) was not a specific set-aside for this contract (SB: false). There is no information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not evident from this data, and it's unclear if small businesses were involved as subcontractors or partners.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Inspector General (IG) and relevant program officials within the Office of the Assistant Secretary for Administration and Management. Accountability measures would be tied to the Cost Plus Incentive Fee (CPIF) structure, performance metrics, and contractual terms. Transparency would depend on the Department of Labor's reporting practices regarding contract performance and expenditures.

Related Government Programs

Workforce Investment Act Programs
Trade Adjustment Assistance Program
Department of Labor Training and Employment Services
Federal Job Training Programs
Career and Technical Education Grants

Risk Flags

Cost Plus Incentive Fee (CPIF) contract type carries inherent cost escalation risks.
Limited public information on contractor's specific performance history for similar contracts.
Lack of detailed performance metrics in the provided data hinders value-for-money assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.7 million to ADAMS AND ASSOCIATES INC. IGF::OT::IGF DELAWARE VALLEY JCC WITH CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES 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 $32.7 million.

What is the period of performance?

Start: 2018-02-01. End: 2022-01-31.

What specific career transition services were mandated under this contract, and what were the key performance indicators (KPIs) used to measure success?

The provided data does not specify the exact career transition services mandated or the key performance indicators (KPIs) used to measure success. However, contracts of this nature typically include services such as career counseling, resume writing assistance, job search strategies, interview coaching, skills assessment, and potentially vocational training or certification programs. Success metrics often involve job placement rates, average time to re-employment, salary levels achieved post-placement, and participant satisfaction surveys. The Cost Plus Incentive Fee (CPIF) structure suggests that performance against certain targets would influence the final fee paid to the contractor, Adams and Associates Inc.

How does the awarded amount of approximately $32.7 million over four years compare to similar career transition service contracts awarded by the Department of Labor or other federal agencies?

Without access to a comprehensive database of similar federal contracts, a direct comparison of the $32.7 million award over four years is difficult. However, this figure represents a significant investment in career transition services. The average annual value of approximately $8.175 million suggests a substantial program. Factors influencing this value include the geographic scope, the number of individuals served, the intensity and duration of services provided, and the specific skill sets being targeted. Larger agencies or those with broader mandates (e.g., serving displaced defense workers) might award larger contracts, while smaller, more targeted programs would naturally have lower values.

What is the track record of Adams and Associates Inc. in performing similar government contracts, particularly those involving career transition or workforce development services?

Information regarding the specific track record of Adams and Associates Inc. in performing similar government contracts is not detailed in the provided data. A thorough assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes with federal agencies. Given the award of this $32.7 million contract, it can be inferred that they likely have some relevant experience and met the qualification criteria set forth by the Department of Labor during the bidding process. Further investigation into their contract performance history would be necessary for a complete understanding of their capabilities and reliability.

What are the potential risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this specific service, and what mitigation strategies might be in place?

The primary risk with a CPIF contract is that the contractor may incur higher costs than anticipated, potentially leading to the government paying more than the initially estimated cost, especially if performance targets are not met or are poorly defined. There's also a risk of 'cost-plus' mentality where the focus shifts from efficiency to simply incurring costs to achieve targets. Mitigation strategies typically involve clearly defined performance metrics, robust government oversight to scrutinize costs and progress, and well-structured incentive clauses that reward efficiency and desired outcomes rather than just activity. The government's contracting officers would be responsible for monitoring these aspects closely.

How has federal spending on career transition and workforce development services evolved over the past decade, and where does this contract fit within that trend?

Federal spending on career transition and workforce development services has historically fluctuated based on economic conditions, legislative priorities, and national needs (e.g., post-recessionary periods, military drawdowns). While specific aggregate data isn't provided, there's a consistent federal commitment to these areas, often funded through the Department of Labor and other agencies. This $32.7 million contract represents a significant, albeit singular, investment within this domain. Its allocation suggests a continued emphasis on supporting individuals facing employment challenges, aligning with ongoing efforts to maintain a skilled and adaptable workforce.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

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: 1630J1-17-R-00010

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $50,006,303

Exercised Options: $39,130,489

Current Obligation: $32,657,111

Actual Outlays: $19,501,038

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $1,910,137

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline