Department of Labor's $46.6M Job Corps Center contract awarded to Horizons Youth Services shows fair value with 3 bidders

Contract Overview

Contract Amount: $46,616,914 ($46.6M)

Contractor: Horizons Youth Services, L.C.

Awarding Agency: Department of Labor

Start Date: 2017-11-29

End Date: 2022-01-31

Contract Duration: 1,524 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF OPERATION OF THE WHITNEY YOUNG JOB CORPS CENTER

Place of Performance

Location: SIMPSONVILLE, SHELBY County, KENTUCKY, 40067

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $46.6 million to HORIZONS YOUTH SERVICES, L.C. for work described as: IGF::OT::IGF OPERATION OF THE WHITNEY YOUNG JOB CORPS CENTER Key points: 1. The contract's value appears reasonable given the duration and scope of services provided. 2. Competition was robust, with three bidders vying for the contract, suggesting a healthy market. 3. The Cost Plus Incentive Fee (CPIF) structure allows for performance-based adjustments, potentially driving efficiency. 4. The contract duration of 1524 days (over 4 years) indicates a significant, long-term commitment. 5. The services provided are critical for youth development and workforce readiness. 6. The contract is positioned within the broader federal education and workforce training sector.

Value Assessment

Rating: good

The contract's total value of $46.6 million over approximately four years suggests an average annual spend of around $11.65 million. Benchmarking against similar Job Corps center operations is challenging without specific data on center size and services, but the CPIF contract type implies a focus on achieving specific performance targets. The pricing structure, while not directly comparable without detailed cost breakdowns, is designed to incentivize efficiency and cost savings, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three distinct bidders participating. This level of competition is generally favorable as it encourages multiple firms to offer their best pricing and technical solutions. The presence of three bidders suggests that the market for operating Job Corps centers is sufficiently competitive to allow for price discovery and selection of the most capable offeror.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and improving service quality through market forces.

Public Impact

The primary beneficiaries are young individuals in Kentucky seeking vocational training and educational opportunities. The contract delivers comprehensive services including education, vocational training, and supportive services to participants. The geographic impact is focused on Kentucky, providing local economic and social benefits. Workforce implications include the training and upskilling of young adults, preparing them for employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met or if unforeseen operational challenges arise.
Reliance on a single contractor for an extended period could lead to complacency if oversight is not rigorous.
The CPIF structure requires careful monitoring to ensure incentives align with true value for money.

Positive Signals

The full and open competition suggests a strong initial selection process based on merit and price.
The CPIF contract type incentivizes contractor performance and efficiency, potentially leading to better outcomes.
The long-term nature of the contract allows for stability and continuity of services for participants.

Sector Analysis

This contract falls within the broader education and workforce development sector, specifically focusing on vocational training. The federal government invests significantly in such programs through various agencies, including the Department of Labor. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar federally funded training initiatives, which often range from tens to hundreds of millions of dollars depending on scale and duration.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Analysis of small business participation would require further investigation into the contractor's subcontracting practices and adherence to any federal small business utilization goals. Without this information, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management, which awarded the contract. Accountability measures are embedded within the Cost Plus Incentive Fee (CPIF) structure, linking contractor payment to performance outcomes. Transparency is generally facilitated through contract award databases, though detailed performance reports may not be publicly accessible. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training and Employment Services

Risk Flags

Long-term contract duration requires sustained oversight.
CPIF structure necessitates clear performance metrics and monitoring.
Geographic concentration may limit broader applicability or transferability of skills.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $46.6 million to HORIZONS YOUTH SERVICES, L.C.. IGF::OT::IGF OPERATION OF THE WHITNEY YOUNG JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is HORIZONS YOUTH SERVICES, L.C..

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 $46.6 million.

What is the period of performance?

Start: 2017-11-29. End: 2022-01-31.

What is the historical spending pattern for operating the Whitney Young Job Corps Center?

The provided data indicates a single definitive contract awarded to Horizons Youth Services, L.C. for the operation of the Whitney Young Job Corps Center, totaling $46,616,914.30 from November 29, 2017, to January 31, 2022, a period of approximately 1524 days. This represents the primary federal expenditure for this specific center during this timeframe. To understand broader historical patterns, one would need to examine prior contracts for this center, potentially under different operators or contract vehicles, and compare spending across different fiscal years to identify trends in cost escalation or program investment.

How does the per-unit cost of training compare to other Job Corps centers?

Determining a precise per-unit cost for training under this contract is challenging without granular data on the number of participants served, the specific training programs offered, and the associated costs for each. The contract value of $46.6 million over roughly four years averages to approximately $11.65 million annually. To benchmark effectively, we would need to compare this annual spend against the average cost per participant at similar-sized Job Corps centers nationwide, considering variations in regional operating costs, program intensity, and participant demographics. Without such comparative data, a direct per-unit cost assessment is not feasible.

What are the key performance indicators (KPIs) tied to the incentive fee structure?

The contract utilizes a Cost Plus Incentive Fee (CPIF) structure, which implies that the contractor's final profit is adjusted based on performance against pre-defined targets. While the specific KPIs are not detailed in the provided data, typical metrics for Job Corps centers include participant graduation rates, job placement rates post-training, average wages of placed graduates, student retention rates, and timely completion of training programs. The incentive fee would likely be designed to reward the contractor for exceeding targets in these areas, thereby encouraging higher program quality and efficiency.

What is the track record of Horizons Youth Services, L.C. in managing federal contracts?

The provided data confirms Horizons Youth Services, L.C. as the contractor for the Whitney Young Job Corps Center operation. To assess their track record, further investigation into their past performance on this and other federal contracts would be necessary. This would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any documented instances of contract disputes or terminations, and their history of successfully managing similar workforce development or educational service contracts. A positive track record would indicate reliability and competence in fulfilling federal obligations.

Are there any significant risks associated with this contract's performance or cost?

Potential risks associated with this contract include operational challenges in delivering effective training and support services, fluctuations in participant enrollment, and the possibility of cost overruns if the incentive fee structure is not carefully managed or if unforeseen circumstances arise. The CPIF structure itself introduces a risk if the incentive targets are poorly defined or if they inadvertently encourage behaviors that do not align with the program's core mission. Additionally, reliance on a single contractor for an extended period necessitates robust oversight to mitigate risks related to service quality degradation or contractor performance issues.

How does the geographic concentration in Kentucky impact the contract's effectiveness?

The contract's focus on Kentucky means the services are tailored to the specific needs and opportunities within that state's labor market. This geographic concentration can enhance effectiveness by allowing the program to build strong relationships with local employers, understand regional workforce demands, and provide relevant vocational training. However, it also means the program's impact is localized, and participants may face challenges if they seek employment outside the state. The effectiveness hinges on the program's ability to align its offerings with Kentucky's economic landscape and job market trends.

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: DOLETA15R00056

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 3586 HORIZONS WAY, HARRISONBURG, VA, 22802

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,847,125

Exercised Options: $56,847,125

Current Obligation: $46,616,914

Actual Outlays: $32,668,512

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline