Department of Labor awards $106M contract for JCC Operations to Management & Training Corporation

Contract Overview

Contract Amount: $106,196,385 ($106.2M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2017-03-01

End Date: 2022-10-31

Contract Duration: 2,070 days

Daily Burn Rate: $51.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF TURNER JCC OPERATIONS

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31705

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $106.2 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::OT::IGF TURNER JCC OPERATIONS Key points: 1. Contract awarded to a single large business, raising questions about small business participation. 2. The contract spans over 5 years, indicating a significant long-term commitment. 3. Cost Plus Incentive Fee (CPIF) pricing structure may incentivize cost control but requires careful monitoring. 4. The NAICS code 611519 suggests services related to technical and trade schools, potentially for workforce development.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure requires careful oversight to ensure value for money. Benchmarking against similar contracts for technical and trade school operations is recommended to assess pricing effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the lack of small business participation noted in the data warrants further investigation into how competition was structured.

Taxpayer Impact: Taxpayer funds are being utilized for workforce development and training services. Ensuring cost-effectiveness and efficient service delivery is crucial for maximizing the return on this investment.

Public Impact

Potential impact on individuals seeking technical and trade education through government-funded programs. The effectiveness of the training and operational services provided will influence workforce readiness. Oversight of the contractor's performance is critical to ensure program goals are met.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
CPIF contract type requires robust oversight

Positive Signals

Full and open competition utilized
Long-term commitment to workforce development

Sector Analysis

The sector involves technical and trade schools, often linked to government workforce development initiatives. Spending benchmarks for similar services can vary widely based on program scope and duration.

Small Business Impact

The data indicates that small businesses were not involved in this contract, despite the full and open competition. Further analysis is needed to understand if opportunities were missed or if the contract scope was not conducive to small business participation.

Oversight & Accountability

The contract's duration and CPIF structure necessitate strong oversight from the Department of Labor to ensure performance standards are met and costs are managed effectively. Regular performance reviews and audits are essential.

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 structure
Limited visibility into small business subcontracting opportunities
Need for robust performance monitoring to ensure service quality
Dependency on a single large contractor for critical operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $106.2 million to MANAGEMENT & TRAINING CORPORATION. IGF::OT::IGF TURNER JCC OPERATIONS

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 $106.2 million.

What is the period of performance?

Start: 2017-03-01. End: 2022-10-31.

What specific services are included under 'JCC Operations' and how do they align with the Department of Labor's mission?

JCC Operations likely refers to services supporting Job Corps Centers, which are administered by the Department of Labor. These centers provide vocational training and education to disadvantaged youth. The contract's scope would detail the specific operational support, facility management, and training program delivery required to run these centers effectively, aligning directly with the DOL's mission of preparing individuals for employment.

What are the key performance indicators (KPIs) for this contract, and how is the incentive fee structured to drive desired outcomes?

The key performance indicators would likely focus on student graduation rates, job placement success, participant satisfaction, and adherence to program standards. The incentive fee structure within a CPIF contract is designed to reward the contractor for achieving or exceeding these KPIs, while also sharing in cost savings. The specific metrics and fee percentages would be detailed in the contract's terms and conditions.

How does the $106 million expenditure compare to historical spending on similar workforce development programs managed by the Department of Labor?

Comparing this $106 million expenditure requires context on the scale and duration of other DOL workforce development programs. Job Corps centers, for instance, are significant undertakings. Benchmarking against the average cost per participant or per center for similar programs over comparable timeframes would reveal if this contract represents a typical investment or an outlier, aiding in assessing its value.

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-00039

Offers Received: 4

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: $119,689,628

Exercised Options: $119,689,628

Current Obligation: $106,196,385

Actual Outlays: $64,285,994

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $693,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline