Department of Labor's $50M Charleston Job Corps Center contract awarded to Horizons Youth Services for operational support

Contract Overview

Contract Amount: $50,003,020 ($50.0M)

Contractor: Horizons Youth Services, L.C.

Awarding Agency: Department of Labor

Start Date: 2017-12-29

End Date: 2022-12-31

Contract Duration: 1,828 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF OPERATION OF THE CHARLESTON JOB CORP CENTER OPS

Place of Performance

Location: CHARLESTON, KANAWHA County, WEST VIRGINIA, 25311

State: West Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $50.0 million to HORIZONS YOUTH SERVICES, L.C. for work described as: IGF::OT::IGF OPERATION OF THE CHARLESTON JOB CORP CENTER OPS Key points: 1. Contract value of $50M over five years suggests significant operational scope. 2. Awarded via full and open competition, indicating a potentially competitive bidding process. 3. The contract's duration of 1828 days (approx. 5 years) allows for sustained service delivery. 4. Fixed-price contract type may offer cost certainty for the government, shifting risk to the contractor. 5. The specific NAICS code (611519) points to specialized technical and trade school operations. 6. Geographic focus on West Virginia (WV) highlights regional service delivery.

Value Assessment

Rating: fair

The contract value of approximately $50 million over five years for operating a Job Corps center appears substantial. Benchmarking this against similar contracts for Job Corps center operations would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature suggests an attempt to control costs, though the overall efficiency and effectiveness of service delivery remain key indicators of value. Without specific performance metrics or comparisons to other centers, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This method is generally preferred as it allows for the widest possible participation and theoretically drives the best value through competitive pricing. The presence of four bidders, as indicated by the data, provides a reasonable level of competition, which should have contributed to price discovery and ensured that the selected contractor offered a competitive proposal.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, ultimately maximizing the value of federal dollars spent on essential services like Job Corps operations.

Public Impact

The primary beneficiaries are the students enrolled in the Charleston Job Corps Center, who receive training and support services. The contract ensures the continued operation and delivery of vocational training, education, and supportive services to young adults. Services are geographically focused on West Virginia, impacting workforce development within the state. The contract supports the workforce involved in operating the center, including instructors, administrative staff, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if fixed-price contract does not adequately account for all operational expenses.
Risk of service quality degradation if contractor prioritizes cost-cutting over program effectiveness.
Dependence on a single contractor for an extended period could lead to complacency or reduced innovation.
Ensuring consistent adherence to Job Corps national standards across all operational aspects.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract provides cost certainty for the government.
Long-term contract (5 years) allows for stable service delivery and program continuity.
Contractor has been selected to operate a critical federal workforce development program.

Sector Analysis

The Job Corps program falls within the broader education and workforce development sector, specifically focusing on vocational training. This contract supports the operation of a technical and trade school, aligning with NAICS code 611519. The market for operating such centers involves organizations with expertise in education, training, and social services. Federal spending in this area aims to equip young individuals with skills for employment, contributing to national workforce readiness. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar government-funded training initiatives.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the primary contract was awarded to Horizons Youth Services, L.C., there is no explicit information regarding subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business partners for specialized services or supplies, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Accountability measures are usually embedded within the contract's performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

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

Risk Flags

Contract duration is lengthy, requiring sustained oversight.
Fixed-price contract may not fully incentivize cost efficiency if not structured with performance incentives.
Lack of explicit small business subcontracting data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $50.0 million to HORIZONS YOUTH SERVICES, L.C.. IGF::OT::IGF OPERATION OF THE CHARLESTON JOB CORP CENTER OPS

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 $50.0 million.

What is the period of performance?

Start: 2017-12-29. End: 2022-12-31.

What is the historical spending pattern for the operation of the Charleston Job Corps Center?

The provided data details a single contract awarded in 2017 for $50,003,019.94, running from December 29, 2017, to December 31, 2022. This represents the primary federal spending for the center's operations during this period. To understand the broader historical spending, one would need to examine previous contracts for this specific center, if any, and potentially compare it to the average cost of operating Job Corps centers nationwide over various fiscal years. Without access to prior contract data or aggregated spending reports for the Charleston center, a comprehensive historical analysis is limited to this single, significant award.

How does the cost per student compare to other Job Corps centers?

The provided data does not include the number of students served or the total operational costs broken down by student. Therefore, a direct comparison of cost per student is not possible with the given information. To perform this analysis, one would need the total contract value, the contract duration, and the average daily or annual student enrollment for the Charleston Job Corps Center. This data would then need to be benchmarked against similar metrics from other Job Corps centers across the country, which are often published in program evaluations or Inspector General reports.

What are the key performance indicators (KPIs) for this contract, and how has the contractor performed against them?

The provided contract data does not specify the key performance indicators (KPIs) established for this contract. Typically, Job Corps center operations contracts include metrics related to student enrollment, retention rates, completion of training programs, job placement rates, and post-placement earnings. Assessing contractor performance would require access to performance reports, quality assurance reviews, and any associated award-fee or incentive clauses. Without these details, it is impossible to evaluate how effectively Horizons Youth Services, L.C. has met the government's objectives for the Charleston Job Corps Center.

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

Horizons Youth Services, L.C. was awarded this significant $50 million contract to operate the Charleston Job Corps Center, indicating a level of qualification and trust from the Department of Labor. While this specific contract is substantial, a comprehensive assessment of their track record would involve examining their history with other federal, state, or local government contracts, especially those related to education, training, and youth services. Information on past performance, contract compliance, and any history of disputes or corrective actions would provide a clearer picture of their capabilities and reliability as a federal contractor.

Are there any specific risks identified by the IG or other oversight bodies related to this contract or the contractor?

The provided data does not contain information regarding specific risks identified by the Inspector General (IG) or other oversight bodies related to this particular contract or Horizons Youth Services, L.C. Such information would typically be found in IG audit reports, semi-annual reports, or specific investigations. To determine if any risks have been flagged, a review of the Department of Labor's Office of Inspector General publications and any publicly available investigative summaries would be necessary.

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: DOL-ETA-15-R-00057

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Endless Horizons Inc

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: $60,656,298

Exercised Options: $60,656,298

Current Obligation: $50,003,020

Actual Outlays: $33,656,791

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline