Department of Labor awards $65.1M contract for Job Corps Center operations, outreach, and career transition services

Contract Overview

Contract Amount: $65,109,647 ($65.1M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2018-11-29

End Date: 2024-03-31

Contract Duration: 1,949 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: GLENMONT JOB CORPS CENTER OPERATIONS, WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES MOD 0 AAPP 7019 CONTRACT #1630J1-19-C-0003 INITIAL CONTRACT FUNDING

Place of Performance

Location: GLENMONT, ALBANY County, NEW YORK, 12077

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $65.1 million to ADAMS AND ASSOCIATES INC for work described as: GLENMONT JOB CORPS CENTER OPERATIONS, WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES MOD 0 AAPP 7019 CONTRACT #1630J1-19-C-0003 INITIAL CONTRACT FUNDING Key points: 1. Contract awarded to Adams and Associates Inc. for Glenmont Job Corps Center. 2. Services include center operations, outreach, admissions, and career transition. 3. Contract duration spans over 1900 days, indicating a long-term need. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. Cost-plus incentive fee contract type allows for performance-based adjustments. 6. The North American Industry Classification System (NAICS) code 611519 points to 'Other Technical and Trade Schools'.

Value Assessment

Rating: fair

The contract value of $65.1 million over approximately 5.4 years suggests an average annual spend of around $12 million. Benchmarking this against similar Job Corps center operations requires access to specific cost data for comparable centers. The cost-plus incentive fee (CPIF) structure implies that the contractor's profit is tied to meeting or exceeding certain performance targets, which can incentivize efficiency but also requires careful monitoring of cost drivers. Without detailed cost breakdowns and comparisons to other centers, a definitive value-for-money assessment is challenging.

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 bids. This suggests a robust bidding process where multiple companies likely vied for the contract. The number of bidders is not specified, but full and open competition generally leads to a more competitive pricing environment and a greater likelihood of selecting the best value offer.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down costs and improve service quality, ensuring federal funds are used efficiently.

Public Impact

Benefits approximately 1,000 students annually at the Glenmont Job Corps Center. Provides vocational training and career services to young adults. Impacts workforce development in New York State. Supports the creation and maintenance of skilled labor in various trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus incentive fee contracts if not managed tightly.
Performance metrics and incentive structures need rigorous oversight to ensure taxpayer value.
Dependence on a single contractor for critical youth training services.

Positive Signals

Full and open competition suggests a competitive process that should yield fair pricing.
The CPIF contract type incentivizes contractor performance and efficiency.
Long contract duration provides stability for program operations and student services.

Sector Analysis

This contract falls within the Education and Training Services sector, specifically focusing on vocational and technical education for young adults. The Job Corps program is a significant federal initiative aimed at workforce development. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar government-funded training programs. The market for such services includes a range of educational institutions and private companies specializing in workforce development.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). While the prime contractor, Adams and Associates Inc., is not explicitly identified as a small business, the contract does not appear to have specific subcontracting goals mandated for small businesses within this award. Further analysis would be needed to determine if the prime contractor has its own small business subcontracting plan or if opportunities exist within the supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are embedded within the Cost Plus Incentive Fee (CPIF) structure, linking contractor profit to performance. Transparency is facilitated through contract awards databases, though detailed performance reports and cost breakdowns may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Department of Labor Training Programs
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Vocational Education Contracts

Risk Flags

Potential for cost overruns in CPIF contracts.
Ensuring consistent student outcomes and job placement rates.
Managing the complexities of serving at-risk youth populations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $65.1 million to ADAMS AND ASSOCIATES INC. GLENMONT JOB CORPS CENTER OPERATIONS, WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES MOD 0 AAPP 7019 CONTRACT #1630J1-19-C-0003 INITIAL CONTRACT FUNDING

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 $65.1 million.

What is the period of performance?

Start: 2018-11-29. End: 2024-03-31.

What is the track record of Adams and Associates Inc. in managing federal contracts, particularly within the Job Corps program?

Adams and Associates Inc. has a history of managing federal contracts, including those related to Job Corps centers. Information from contract databases indicates they have been involved in operating and providing services for various Job Corps sites. Assessing their overall track record would involve reviewing past performance evaluations, any documented disputes or contract terminations, and their success in meeting performance metrics on previous awards. A detailed review of their financial stability and management capacity is also crucial for understanding their ability to successfully execute large-scale contracts like this one. Their experience suggests a familiarity with the program's requirements and operational demands.

How does the cost per student for this contract compare to other Job Corps centers nationally?

To compare the cost per student, we would need to know the average number of students served annually and the total contract value. The total award is $65.1 million, and the contract duration is approximately 1949 days (about 5.4 years). If we assume an average annual spend of roughly $12 million, and if the Glenmont center serves, for example, 1,000 students annually, the cost per student would be around $12,000 per year. National averages for Job Corps centers can vary significantly based on location, services provided, and student demographics. A comprehensive comparison would require accessing aggregated data on student enrollment and expenditures across all Job Corps centers to establish a reliable benchmark. Without specific enrollment figures for Glenmont, this remains an estimation.

What are the key performance indicators (KPIs) used in this Cost Plus Incentive Fee (CPIF) contract, and how are they measured?

The specific Key Performance Indicators (KPIs) for this Cost Plus Incentive Fee (CPIF) contract are not detailed in the provided award data. However, typical KPIs for Job Corps center operations often include student academic and vocational attainment rates, job placement success post-graduation, student retention and completion rates, and compliance with safety and operational standards. The CPIF structure means that the contractor's fee (profit) is adjusted based on their performance against these pre-defined targets. Measurement methods would likely involve regular reporting by the contractor, site visits and audits by the Department of Labor, and potentially third-party evaluations. The incentive fee is earned when performance exceeds baseline targets, while underperformance could lead to reduced fees.

What is the historical spending trend for the Glenmont Job Corps Center operations and related services?

The provided data reflects a single contract award of $65.1 million for the Glenmont Job Corps Center operations, outreach, and career transition services, initiated in late 2018 and ending in early 2024. This represents the funding allocated for this specific period and scope. To understand historical spending trends, one would need to examine previous contracts awarded for the same center or similar services over a longer timeframe. This would involve searching contract databases for prior awards to Adams and Associates Inc. or other contractors for the Glenmont facility, noting their values, durations, and any modifications. Without this historical context, it's difficult to ascertain if current spending represents an increase, decrease, or stable trend compared to past investments.

Are there any identified risks associated with the contractor's performance or the nature of the services provided?

Risks associated with this contract can be categorized. From a performance perspective, there's always a risk that the contractor may not meet the demanding performance metrics required for Job Corps centers, potentially impacting student outcomes and leading to reduced incentive fees. The Cost Plus Incentive Fee (CPIF) structure, while incentivizing, also carries a risk of cost growth if not meticulously managed and overseen by the agency. Furthermore, the nature of serving at-risk youth presents inherent challenges in student engagement, retention, and successful placement, which can be influenced by external economic factors beyond the contractor's control. The long duration of the contract also means that shifts in federal policy or funding priorities could pose a risk.

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: 1630J2-18-R-00005

Offers Received: 1

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: $84,478,469

Exercised Options: $80,304,140

Current Obligation: $65,109,647

Actual Outlays: $56,239,468

Subaward Activity

Number of Subawards: 68

Total Subaward Amount: $6,373,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline