Labor Department Awards $47.7M for Career Transition Services to Heritage Services Corp

Contract Overview

Contract Amount: $47,681,112 ($47.7M)

Contractor: Heritage Services Corporation

Awarding Agency: Department of Labor

Start Date: 2018-03-01

End Date: 2023-05-31

Contract Duration: 1,917 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF JACKSONVILLE JCC WITH OUTREACH AND ADMINISTRATIONS AND CAREER TRANSITION SERVICES.

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32209

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $47.7 million to HERITAGE SERVICES CORPORATION for work described as: IGF::OT::IGF JACKSONVILLE JCC WITH OUTREACH AND ADMINISTRATIONS AND CAREER TRANSITION SERVICES. Key points: 1. Contract awarded via full and open competition, indicating a competitive bidding process. 2. The contract spans over 5 years, suggesting a long-term need for these services. 3. The use of a Cost Plus Incentive Fee (CPIF) structure aims to align contractor performance with government objectives. 4. The NAICS code 611519 points to vocational and technical training, a specific sector.

Value Assessment

Rating: fair

The contract's CPIF structure allows for performance-based adjustments, but the final cost-effectiveness depends on achieved incentives. Benchmarking against similar career transition service contracts is needed for a precise value 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,' which suggests a competitive process was initiated but may have had specific source exclusions. This method can impact price discovery if the exclusions were too broad.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure services at a reasonable price. However, the CPIF structure requires careful monitoring to ensure cost efficiency.

Public Impact

Supports veterans and transitioning service members by providing essential career services. Aims to improve employment outcomes and reduce unemployment duration for participants. The contract's success directly impacts the employability and economic well-being of its beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The sector involves vocational training and career development services, often contracted by government agencies to support workforce initiatives. Spending benchmarks for similar services can vary significantly based on scope and duration.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract's duration and CPIF structure necessitate robust oversight to ensure performance standards are met and costs are controlled effectively. Regular performance reviews are crucial.

Related Government Programs

Risk Flags

Tags

other-technical-and-trade-schools, department-of-labor, fl, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $47.7 million to HERITAGE SERVICES CORPORATION. IGF::OT::IGF JACKSONVILLE JCC WITH OUTREACH AND ADMINISTRATIONS AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is HERITAGE SERVICES 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 $47.7 million.

What is the period of performance?

Start: 2018-03-01. End: 2023-05-31.

What is the typical cost per participant for similar career transition services?

The typical cost per participant for similar career transition services can range widely, from a few hundred dollars for basic resume workshops to several thousand dollars for comprehensive retraining and job placement programs. Factors influencing cost include the intensity of services, duration of support, and specific target populations. Benchmarking against contracts with similar scope and geographic focus is essential for a precise comparison.

What are the key performance indicators (KPIs) for this contract, and how are they measured?

Key performance indicators likely focus on successful job placement rates, average time to employment, participant satisfaction, and retention in new employment. These KPIs are typically measured through participant surveys, employer feedback, and tracking employment status post-program. The CPIF structure suggests that achieving or exceeding these KPIs will result in higher contractor compensation.

How does the 'exclusion of sources' in the competition method potentially impact the final price and service quality?

Excluding specific sources from a 'full and open' competition can limit the pool of potential bidders, potentially reducing price competition if the excluded sources were strong contenders. This could lead to a higher price than if all qualified vendors had participated. However, exclusions might be justified for specific technical capabilities or past performance, potentially ensuring higher quality service delivery.

Industry Classification

NAICS: Educational ServicesTechnical and Trade SchoolsOther Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630J3-17-R-00007

Offers Received: 14

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 220 CORAL SANDS SUITE 1, ROCKLEDGE, FL, 32955

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,685,267

Exercised Options: $49,685,267

Current Obligation: $47,681,112

Actual Outlays: $29,890,596

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2018-03-01

Current End Date: 2023-05-31

Potential End Date: 2023-05-31 00:00:00

Last Modified: 2026-04-03

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