Department of Labor awards $63M contract to Adams and Associates for Job Corps operations

Contract Overview

Contract Amount: $63,053,439 ($63.1M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2018-12-21

End Date: 2024-02-28

Contract Duration: 1,895 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: GRAFTON JOB CORPS CENTER OPERATIONS,WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES MOD 0 AAPP 8003 CONTRACT #1630J1-19-C-0003 INITIAL CONTRACT AWARD FUNDING

Place of Performance

Location: NORTH GRAFTON, WORCESTER County, MASSACHUSETTS, 01536

State: Massachusetts Government Spending

Plain-Language Summary

Department of Labor obligated $63.1 million to ADAMS AND ASSOCIATES INC for work described as: GRAFTON JOB CORPS CENTER OPERATIONS,WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES MOD 0 AAPP 8003 CONTRACT #1630J1-19-C-0003 INITIAL CONTRACT AWARD FUNDING Key points: 1. The contract, valued at $63.05 million, covers outreach, admissions, and career transition services. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee (CPIF), which incentivizes cost control. 4. This spending supports vocational training and workforce development initiatives.

Value Assessment

Rating: good

The contract's CPIF structure suggests an effort to manage costs effectively. Benchmarking against similar Job Corps center operations would provide further insight into pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: Taxpayer funds are being used to support essential workforce development programs, aiming for a positive return through improved employment outcomes.

Public Impact

Supports job training and career development for individuals seeking new skills. Aims to improve employment rates and economic self-sufficiency for participants. Contributes to the national effort to address workforce shortages in various sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is substantial (1895 days).
CPIF contract type can lead to cost overruns if not managed carefully.

Positive Signals

Full and open competition utilized.
Focus on critical workforce development services.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' NAICS code, supporting vocational training. Spending in this sector is crucial for addressing skills gaps and promoting economic mobility.

Small Business Impact

The data does not indicate any specific set-asides for small businesses in this contract award.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Standard oversight mechanisms 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

Long contract duration may increase risk of scope creep or changing needs.
CPIF contracts require robust government oversight to control costs.
Performance metrics and their impact on the incentive fee need careful monitoring.
Potential for contractor to prioritize fee over optimal service delivery if not managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $63.1 million to ADAMS AND ASSOCIATES INC. GRAFTON JOB CORPS CENTER OPERATIONS,WITH OUTREACH/ADMISSIONS AND CAREER TRANSITION SERVICES MOD 0 AAPP 8003 CONTRACT #1630J1-19-C-0003 INITIAL CONTRACT AWARD 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 $63.1 million.

What is the period of performance?

Start: 2018-12-21. End: 2024-02-28.

What is the expected impact of these career transition services on participant employment outcomes?

The career transition services are designed to equip participants with job search skills, resume writing assistance, and interview preparation. The expected impact is an increase in successful job placements and higher starting salaries for graduates, contributing to long-term economic self-sufficiency and reducing reliance on public assistance programs.

How does the CPIF structure mitigate potential cost overruns for the government?

The Cost Plus Incentive Fee (CPIF) structure incentivizes the contractor to perform efficiently by sharing in cost savings or overruns. If Adams and Associates operates below the target cost, both the government and the contractor benefit. Conversely, if costs exceed the target, the contractor bears a larger portion of the excess, encouraging diligent cost management.

Are there performance metrics tied to this contract to ensure the effectiveness of the Job Corps operations?

While not explicitly detailed in the provided data, CPIF contracts typically include performance metrics and targets. The 'incentive fee' component suggests that contractor performance in areas like student completion rates, job placement success, and participant satisfaction directly influences their final payment, thereby driving effectiveness.

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: 1630J1-18-R-00009

Offers Received: 4

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: $65,993,480

Exercised Options: $65,993,480

Current Obligation: $63,053,439

Actual Outlays: $55,936,141

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $5,073,480

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline