Department of Labor awards $27.5M contract to INSIGHTS TRAINING GROUP for Job Corps Center operations in Kentucky

Contract Overview

Contract Amount: $27,511,965 ($27.5M)

Contractor: Insights Training Group, LLC

Awarding Agency: Department of Labor

Start Date: 2017-03-16

End Date: 2021-03-31

Contract Duration: 1,476 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::CT::IGF OPERATION OF CARL D. PERKINS JOB CORPS CENTER

Place of Performance

Location: PRESTONSBURG, FLOYD County, KENTUCKY, 41653

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $27.5 million to INSIGHTS TRAINING GROUP, LLC for work described as: IGF::CT::IGF OPERATION OF CARL D. PERKINS JOB CORPS CENTER Key points: 1. The contract focuses on operating the Carl D. Perkins Job Corps Center, a vocational training program. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries risk. 4. The sector involves vocational training and education, a critical area for workforce development.

Value Assessment

Rating: fair

The contract value of $27.5M over approximately 4 years (1476 days) for operating a Job Corps center appears within a reasonable range for such services. Benchmarking against similar large-scale training and facility management contracts would provide a more precise assessment.

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.' This indicates that while competition was sought, certain sources were initially excluded, potentially narrowing the field. The price discovery mechanism under a CPIF contract relies on negotiated costs and performance incentives.

Taxpayer Impact: Taxpayer funds are being used to support workforce development through the Job Corps program. The effectiveness of the training and the efficiency of operations will determine the ultimate value for taxpayers.

Public Impact

Supports workforce development by providing vocational training to eligible youth. Operates a key federal facility (Carl D. Perkins Job Corps Center) in Kentucky. Potential impact on local employment and economic activity in the region where the center is located. Ensures continued access to job training programs for individuals seeking to improve their career prospects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type can lead to cost overruns if not managed carefully.
Exclusion of sources in competition may limit optimal price discovery.
Contract duration is substantial, requiring ongoing performance monitoring.

Positive Signals

Supports a vital federal program for youth employment.
Full and open competition, even with exclusions, suggests an attempt at a competitive process.
Focus on training and job placement can yield positive societal outcomes.

Sector Analysis

The sector is vocational education and workforce development. Spending in this area is crucial for addressing unemployment and skill gaps. Benchmarks for operating Job Corps centers vary based on size, location, and services offered, but significant federal investment is typical for such programs.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight would typically be conducted by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Regular performance reviews, financial audits, and site visits are standard mechanisms to ensure accountability and effective contract execution.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPIF contract type.
Limited transparency on source exclusion rationale.
Need for robust performance monitoring to ensure value for money.
Reliance on contractor performance for successful program outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $27.5 million to INSIGHTS TRAINING GROUP, LLC. IGF::CT::IGF OPERATION OF CARL D. PERKINS JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is INSIGHTS TRAINING GROUP, LLC.

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 $27.5 million.

What is the period of performance?

Start: 2017-03-16. End: 2021-03-31.

What is the cost-effectiveness of the training provided under this contract compared to other Job Corps centers or similar programs?

Assessing cost-effectiveness requires detailed performance metrics, such as job placement rates, starting salaries of graduates, and completion rates, benchmarked against national averages and similar vocational training programs. Without specific outcome data, it's difficult to definitively state the cost-effectiveness. The CPIF structure aims to align contractor incentives with cost control and performance, but its success depends on the specific incentive targets and monitoring.

What were the specific reasons for excluding certain sources during the competition phase, and did this exclusion impact the final contract price?

The rationale for excluding sources is not provided in the data. Typically, exclusions are based on specific technical capabilities, past performance, or failure to meet pre-qualification criteria. If the excluded sources were highly competitive, their absence could potentially lead to a higher final price than if a broader competition had occurred. A review of the solicitation documents and award justification would clarify these points.

How effectively does INSIGHTS TRAINING GROUP, LLC manage the CPIF contract to ensure optimal resource utilization and achieve program goals?

Effectiveness is measured by the contractor's ability to meet performance targets (e.g., training completion, job placement) while managing costs within the CPIF framework. The government's oversight plays a crucial role in monitoring expenditures, verifying performance, and adjusting incentive fees accordingly. Regular performance reports and audits are key indicators of how well the contract is being managed to achieve its objectives.

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: DOL-ETA-15-R-00005

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 331 N MAIN ST, MARION, VA, 24354

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $65,068,243

Exercised Options: $65,068,243

Current Obligation: $27,511,965

Actual Outlays: $12,239,454

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline