Labor Awards $137M Contract to Management & Training Corp for Technical Schools in Kentucky

Contract Overview

Contract Amount: $137,093,489 ($137.1M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2018-10-30

End Date: 2024-01-31

Contract Duration: 1,919 days

Daily Burn Rate: $71.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: EARLE C CLEMENTS/15069/MTC, 1630J2-19-C-0001, AWARD REQ AND INCREMENTAL FUNDING

Place of Performance

Location: MORGANFIELD, UNION County, KENTUCKY, 42437

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $137.1 million to MANAGEMENT & TRAINING CORPORATION for work described as: EARLE C CLEMENTS/15069/MTC, 1630J2-19-C-0001, AWARD REQ AND INCREMENTAL FUNDING Key points: 1. The contract, valued at $137 million, is for Other Technical and Trade Schools (NAICS 611519). 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee, which can incentivize cost control but also carries risk. 4. The duration is 1919 days, indicating a long-term commitment. 5. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

The contract value of $137 million over approximately 5 years is substantial for technical and trade school services. Benchmarking against similar large-scale educational contracts would be necessary to fully assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. The use of a Cost Plus Incentive Fee structure allows for shared risk and reward between the government and contractor.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value. However, the CPIF contract type requires careful monitoring to ensure costs remain controlled.

Public Impact

Provides vocational training and technical education services, potentially impacting workforce development in Kentucky. The significant contract value suggests a large scope of services and potential impact on numerous trainees. Long contract duration implies sustained government need for these specific educational services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee (CPIF) contract type can lead to cost overruns if not managed effectively.
Lack of small business set-aside may limit opportunities for smaller, specialized training providers.
The specific performance metrics and incentive structure for this CPIF contract are not detailed, posing a potential oversight risk.

Positive Signals

Awarded through full and open competition, indicating a robust market search.
Long contract duration suggests a stable and ongoing need for the services provided.
The contract aims to provide technical and trade education, contributing to workforce development.

Sector Analysis

The sector involves educational services, specifically technical and trade schools. Spending in this area supports workforce development and specialized skill acquisition. Benchmarks for similar large-scale vocational training contracts would provide further context.

Small Business Impact

This contract was not set aside for small businesses, meaning it was competed broadly. While this ensures maximum competition, it may mean that opportunities for smaller, specialized training providers were limited.

Oversight & Accountability

The contract's Cost Plus Incentive Fee structure necessitates robust oversight to ensure cost control and performance targets are met. The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for oversight.

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.
Lack of specific performance metrics makes oversight challenging.
No small business participation noted.
Long contract duration increases risk exposure over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $137.1 million to MANAGEMENT & TRAINING CORPORATION. EARLE C CLEMENTS/15069/MTC, 1630J2-19-C-0001, AWARD REQ AND INCREMENTAL FUNDING

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

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 $137.1 million.

What is the period of performance?

Start: 2018-10-30. End: 2024-01-31.

What specific technical and trade skills are being taught under this contract, and how do they align with current labor market demands in Kentucky?

The contract is for NAICS code 611519 (Other Technical and Trade Schools). While the specific skills are not detailed in the provided data, this category typically includes programs for automotive repair, HVAC, culinary arts, cosmetology, and various skilled trades. Alignment with labor market demands would require analysis of Kentucky's specific workforce needs and the curriculum offered by Management & Training Corporation.

How effectively are the incentive fee structures within this CPIF contract driving cost efficiency and performance improvements for the Department of Labor?

Assessing the effectiveness of the incentive fee structure requires access to performance data and cost reports. CPIF contracts aim to align contractor and government interests by rewarding cost savings and performance achievements. Without specific metrics and outcomes, it's difficult to quantify the effectiveness, but ongoing monitoring by the contracting officer is crucial.

What is the long-term impact of this $137 million contract on the workforce development landscape in Kentucky, particularly concerning job placement rates for trainees?

A contract of this magnitude suggests a significant investment in training programs. The long-term impact hinges on the quality of training, the relevance of skills taught to the Kentucky job market, and the contractor's success in facilitating job placements. Positive impacts would include a more skilled workforce and reduced unemployment, while negative impacts could arise from poorly matched training or low placement rates.

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-00004

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PL DR STE 100, CENTERVILLE, UT, 84014

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: $164,477,344

Exercised Options: $163,477,344

Current Obligation: $137,093,489

Actual Outlays: $101,887,746

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $450,457

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline