Department of Labor awards $45.3M contract for career transition services to Career Systems Development Corporation

Contract Overview

Contract Amount: $45,343,309 ($45.3M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2018-02-28

End Date: 2023-03-31

Contract Duration: 1,857 days

Daily Burn Rate: $24.4K/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 CASSADAGA JCC WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: CASSADAGA, CHAUTAUQUA County, NEW YORK, 14718

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $45.3 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: IGF::OT::IGF CASSADAGA JCC WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES. Key points: 1. Contract provides comprehensive outreach, admissions, and career transition services. 2. Services are delivered through a definitive contract with a cost-plus incentive fee structure. 3. The contract duration spans over 5 years, indicating a long-term need for these services. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The contractor, Career Systems Development Corporation, has been awarded this significant contract. 6. The services are categorized under 'Other Technical and Trade Schools' (NAICS 611519).

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The cost-plus incentive fee (CPIF) structure suggests an attempt to align contractor performance with cost efficiency, but the ultimate value depends heavily on the achieved incentives and the quality of services delivered. Comparing it to similar contracts for career transition services across different agencies would provide a clearer picture of its cost-effectiveness. The raw dollar amount of $45.3 million over five years suggests a substantial investment in workforce development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bids suggests a competitive environment, which typically aids in price discovery and can lead to more favorable terms for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market that drives competitive pricing and encourages contractors to offer their best value, potentially leading to cost savings or improved service quality.

Public Impact

Individuals seeking career transition assistance, including veterans and displaced workers, are the primary beneficiaries. The contract facilitates access to outreach, admissions, and career transition services. Services are primarily delivered in New York (ST: NY, SN: NEW YORK). The contract supports the workforce development ecosystem by providing essential services to individuals navigating career changes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPIF contracts if incentives are not structured effectively.
Ensuring consistent service quality across all outreach and admissions points may be a challenge.
Measuring the long-term career success and impact of transition services requires robust tracking and evaluation.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Cost-plus incentive fee structure aims to align contractor performance with government objectives.
Long contract duration suggests a sustained commitment to providing these critical services.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and career development. The market for such services is driven by government initiatives aimed at workforce development, re-employment, and support for transitioning individuals. Comparable spending benchmarks would involve looking at other federal contracts for similar workforce development programs, career counseling, and vocational training, particularly those administered by the Department of Labor.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (SB: false, SS: false). While the primary award went to Career Systems Development Corporation, there may be opportunities for small businesses to participate as subcontractors, depending on the contractor's subcontracting plan. The impact on the small business ecosystem would depend on the extent to which they are integrated into the service delivery chain.

Oversight & Accountability

Oversight for this contract would likely fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are typically embedded within the contract's performance work statement and the CPIF structure, which incentivizes meeting specific cost and performance targets. Transparency would be enhanced through regular reporting requirements and potential audits by the Department of Labor's Inspector General.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act (WIOA) programs
Department of Veterans Affairs Transition Assistance Program (TAP)
State Workforce Development Agencies
Career and Technical Education Grants

Risk Flags

Potential for cost overruns in CPIF contracts.
Ensuring consistent service quality and outcomes.
Effectiveness of outreach and admissions processes.
Long-term impact measurement of career transition services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $45.3 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. IGF::OT::IGF CASSADAGA JCC WITH OUTREACH AND ADMISSIONS AND CAREER TRANSITION SERVICES.

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 $45.3 million.

What is the period of performance?

Start: 2018-02-28. End: 2023-03-31.

What is the track record of Career Systems Development Corporation in delivering similar career transition services?

Assessing the track record of Career Systems Development Corporation requires a review of their past performance on federal and commercial contracts, particularly those involving outreach, admissions, and career transition services. Information on their success rates in placing individuals in employment, their client satisfaction scores, and their ability to manage complex service delivery networks would be crucial. A deeper dive into their past performance evaluations, any past performance issues, and their experience with cost-plus incentive fee contracts would provide a more comprehensive understanding of their capabilities and reliability for this specific award.

How does the per-unit cost of these services compare to industry benchmarks?

Determining the per-unit cost requires defining what constitutes a 'unit' of service (e.g., per individual served, per counseling session, per successful placement). Without this granular data and specific performance metrics, a direct comparison to industry benchmarks is difficult. However, the contract's CPIF structure suggests an effort to manage costs effectively by incentivizing performance. A thorough analysis would involve comparing the contractor's proposed costs against historical data for similar services and against publicly available data from other government agencies or private sector providers, adjusted for geographic location and service scope.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The success of this contract is likely measured through a combination of KPIs related to outreach effectiveness, admissions processing efficiency, and the ultimate career outcomes for participants. These could include metrics such as the number of individuals reached, the rate of successful admissions into programs, the timeliness of service delivery, participant satisfaction levels, and, most importantly, employment placement rates and post-placement retention. The CPIF structure implies that specific, measurable, achievable, relevant, and time-bound (SMART) goals are tied to these KPIs, with financial incentives linked to their achievement.

What is the historical spending pattern for career transition services by the Department of Labor?

Analyzing historical spending patterns for career transition services by the Department of Labor would involve examining contract data over several fiscal years. This would reveal trends in contract values, the number of contracts awarded, the types of services procured, and the primary contractors. Understanding these patterns can help contextualize the $45.3 million award, indicating whether it represents an increase or decrease in overall investment in such services, and whether spending has been concentrated with specific providers or spread across multiple entities.

What are the potential risks associated with the cost-plus incentive fee (CPIF) contract structure?

The primary risk with a CPIF contract is the potential for cost overruns if the incentive structure is not carefully designed or if the contractor faces unforeseen challenges that drive up costs beyond initial estimates. While CPIF aims to motivate efficiency, there's a risk that the contractor might prioritize achieving incentives over optimal long-term value or quality if the metrics are not perfectly aligned. Additionally, the government bears a significant portion of the cost risk, and extensive oversight is required to ensure that costs are reasonable and that the contractor is making a good-faith effort to control them.

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-00009

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

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: $50,043,475

Exercised Options: $50,043,475

Current Obligation: $45,343,309

Actual Outlays: $32,910,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline