Department of Labor awards $33.8M contract for New Haven Job Corps Center operations to SERRATO CORPORATION

Contract Overview

Contract Amount: $33,835,536 ($33.8M)

Contractor: Serrato Corporation

Awarding Agency: Department of Labor

Start Date: 2018-10-30

End Date: 2022-11-30

Contract Duration: 1,492 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF OPERATION OF THE NEW HAVEN JOB CORPS CENTER

Place of Performance

Location: NEW HAVEN, NEW HAVEN County, CONNECTICUT, 06515

State: Connecticut Government Spending

Plain-Language Summary

Department of Labor obligated $33.8 million to SERRATO CORPORATION for work described as: IGF::OT::IGF OPERATION OF THE NEW HAVEN JOB CORPS CENTER Key points: 1. The contract value of $33.8M over 4 years represents significant investment in vocational training. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. The sector is Other Technical and Trade Schools, crucial for workforce development.

Value Assessment

Rating: good

The contract's value of $33.8M over approximately 4 years suggests a substantial but potentially reasonable cost for operating a Job Corps center. Benchmarking against similar contracts for vocational training centers would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a robust process to ensure fair pricing and selection. This method typically leads to better price discovery and value for the government.

Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for job training services.

Public Impact

Provides essential job training and career services to disadvantaged youth. Supports local economic development through workforce preparedness. Impacts the educational and employment outcomes for hundreds of individuals annually.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope changes or unforeseen operational challenges arise.
Dependence on contractor performance for program success and student outcomes.

Positive Signals

Firm Fixed Price contract limits government cost exposure.
Full and open competition suggests competitive pricing.
Long-term contract provides stability for program operations.

Sector Analysis

The Department of Labor's investment in the New Haven Job Corps Center falls within the broader education and workforce development sector. Spending in this area is critical for addressing skills gaps and promoting economic mobility, with benchmarks varying based on program scope and student population.

Small Business Impact

Analysis of small business participation is not directly available from the provided data. Further review would be needed to determine if small businesses were involved as subcontractors or prime contractors.

Oversight & Accountability

The contract's oversight would typically involve the Department of Labor's Office of the Assistant Secretary for Administration and Management, ensuring compliance with terms and performance standards. Regular performance reviews and audits are key accountability mechanisms.

Related Government Programs

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

Risk Flags

Contract duration is substantial, requiring ongoing monitoring.
Performance metrics are crucial for ensuring program effectiveness.
Potential for scope creep or unforeseen cost increases.
Reliance on contractor's management and operational expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $33.8 million to SERRATO CORPORATION. IGF::OT::IGF OPERATION OF THE NEW HAVEN JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is SERRATO 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 $33.8 million.

What is the period of performance?

Start: 2018-10-30. End: 2022-11-30.

What is the cost per student served by this contract?

The provided data does not explicitly state the number of students served or the total cost per student. To determine this, one would need to know the average daily enrollment or the total number of students who completed the program during the contract period and divide that by the total contract value of $33.8 million.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance measured?

Key performance indicators for a Job Corps center contract typically include student enrollment rates, completion rates, job placement rates, and post-placement earnings. Performance is usually measured through regular reporting, site visits, and data analysis by the contracting officer's representative (COR) to ensure program effectiveness and compliance.

Are there any specific provisions in the contract related to program innovation or adaptation to changing labor market needs?

The contract details do not specify provisions for program innovation. However, the 'Other Technical and Trade Schools' classification suggests a need for adaptability. The government likely expects the contractor to maintain relevant curricula and training aligned with current industry demands, possibly through contract modifications or performance feedback.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630J4-18-R-00004

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 135 WEST COUNCIL ST, TUCSON, AZ, 85701

Business Categories: 8(a) Program Participant, Category Business, Community Development Corporation, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Nonprofit Organization, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $66,143,859

Exercised Options: $55,304,111

Current Obligation: $33,835,536

Actual Outlays: $22,316,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline