Labor Department awards $62.4M contract for career transition services to Management & Training Corporation

Contract Overview

Contract Amount: $62,377,461 ($62.4M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2018-05-30

End Date: 2022-06-30

Contract Duration: 1,492 days

Daily Burn Rate: $41.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF EDISON JCC WITH CAREER TRANSITION SERVICES.

Place of Performance

Location: EDISON, MIDDLESEX County, NEW JERSEY, 08817

State: New Jersey Government Spending

Plain-Language Summary

Department of Labor obligated $62.4 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::OT::IGF EDISON JCC WITH CAREER TRANSITION SERVICES. Key points: 1. Contract value of $62.4M over 4 years. 2. Competition was full and open. 3. Risk appears moderate given the contract type and duration. 4. Sector is primarily education and training services.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar career transition service contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Taxpayer funds are being used for essential career transition services, aiming to support individuals in their re-employment efforts.

Public Impact

Supports workforce development and re-employment initiatives. Provides services to individuals transitioning between careers. Contract duration of over 4 years indicates a long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type may incentivize higher costs.
Long contract duration could lead to scope creep or outdated services if not monitored.

Positive Signals

Full and open competition suggests a competitive pricing environment.
Contract aims to provide valuable support services to individuals.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on educational and training services. Benchmarks for similar services vary widely based on scope and duration.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight would typically be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Monitoring the contractor's performance and cost controls is crucial.

Related Government Programs

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

Risk Flags

Cost Plus Incentive Fee contract.
Long contract duration.
Lack of specific performance metrics in provided data.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $62.4 million to MANAGEMENT & TRAINING CORPORATION. IGF::OT::IGF EDISON JCC WITH CAREER TRANSITION SERVICES.

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 $62.4 million.

What is the period of performance?

Start: 2018-05-30. End: 2022-06-30.

What is the cost-effectiveness of the career transition services provided?

The cost-effectiveness is difficult to assess without specific performance metrics and outcomes data. While the contract aims to provide valuable services, the CPIF structure necessitates close monitoring to ensure costs align with achieved results and that the incentive fee is earned appropriately.

What are the primary risks associated with this contract?

Key risks include potential cost overruns due to the Cost Plus Incentive Fee structure, and the possibility that the services may not fully meet evolving workforce needs over the contract's four-year duration. Ineffective service delivery or poor contractor performance also represent significant risks.

How effectively does this contract support the Department of Labor's mission?

This contract directly supports the Department of Labor's mission by providing critical career transition services, aiding individuals in navigating job changes and enhancing workforce participation. Its effectiveness hinges on the quality of services delivered and the positive outcomes achieved by participants.

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: 1630J1-18-R-00004

Offers Received: 6

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: $64,757,450

Exercised Options: $64,757,450

Current Obligation: $62,377,461

Actual Outlays: $48,190,723

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $183,072

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline