Department of Labor awards $84.8M contract for NYC Job Corps Center operations to Management & Training Corporation

Contract Overview

Contract Amount: $84,797,926 ($84.8M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2018-02-26

End Date: 2023-09-30

Contract Duration: 2,042 days

Daily Burn Rate: $41.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF NEW YORK CITY JOB CORPS CENTER

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11205

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $84.8 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF NEW YORK CITY JOB CORPS CENTER Key points: 1. The contract value of $84.8M over 5.5 years represents significant investment in vocational training. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type (Cost Plus Incentive Fee) can lead to cost overruns if not managed carefully. 4. The sector is 'Other Technical and Trade Schools', indicating a focus on specialized education.

Value Assessment

Rating: fair

The contract value of $84.8M for 2042 days (approx. 5.5 years) averages to about $16.2M annually. Benchmarking against similar vocational training contracts would be necessary for a precise assessment, but this appears to be a substantial award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market value.

Taxpayer Impact: Taxpayer funds are being used for vocational training, aiming to improve workforce skills and reduce unemployment. The effectiveness of the program will determine the ultimate return on investment.

Public Impact

Provides job training and career development opportunities for young adults in New York City. Aims to equip participants with skills for in-demand industries. Potential impact on local employment rates and economic mobility for participants. The success of the center directly influences the employability of its graduates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can incentivize contractor to increase costs.
Long contract duration (over 5 years) may reduce flexibility for future adjustments.
No specific mention of small business participation.

Positive Signals

Full and open competition suggests a robust procurement process.
Focus on job training addresses workforce development needs.
Contract awarded to a known entity in the field (Management & Training Corporation).

Sector Analysis

The 'Other Technical and Trade Schools' sector involves specialized education and training programs. Spending in this area is often driven by government initiatives to address workforce shortages and provide pathways to employment in skilled trades.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Department of Labor, through the Office of the Assistant Secretary for Administration and Management, is responsible for overseeing this contract. Standard oversight mechanisms for federal contracts should be in place to ensure performance and financial 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 due to CPIF contract type.
Long-term contract may lack flexibility for evolving training needs.
No explicit mention of small business utilization.
Performance metrics and oversight effectiveness are critical for value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $84.8 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF NEW YORK CITY JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & 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 $84.8 million.

What is the period of performance?

Start: 2018-02-26. End: 2023-09-30.

What are the key performance indicators (KPIs) for this contract, and how is performance measured to ensure value for money?

Key performance indicators would likely include student graduation rates, job placement rates post-graduation, starting salaries of placed graduates, and employer satisfaction. Performance is typically measured through regular reporting by the contractor, site visits, and potentially third-party evaluations to ensure the Job Corps center is meeting its objectives and delivering effective training.

What are the specific risks associated with the Cost Plus Incentive Fee (CPIF) contract type in this context, and how are they mitigated?

The primary risk of a CPIF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed plus a fee. Mitigation strategies include clearly defined target costs, incentive fee structures tied to achieving specific performance goals (e.g., cost savings, quality improvements), and robust government oversight to monitor expenditures and contractor performance.

How does the success of this Job Corps center contribute to the broader federal goals of workforce development and economic opportunity?

The success of this center directly contributes by providing essential vocational skills to young adults, potentially lifting them out of poverty and into sustainable careers. This, in turn, strengthens the local and national workforce, reduces reliance on social programs, and boosts economic productivity. Effective training programs are a cornerstone of federal efforts to ensure a skilled labor force for the future.

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-00088

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PL DR STE 100, CENTERVILLE, UT, 84014

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: $98,302,806

Exercised Options: $98,302,806

Current Obligation: $84,797,926

Actual Outlays: $65,425,777

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,024,217

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline