Labor Dept. Awards $43.5M for Gadsden Job Corps Operations to Chugach Training

Contract Overview

Contract Amount: $43,530,465 ($43.5M)

Contractor: Chugach Training and Educational Solutions, LLC

Awarding Agency: Department of Labor

Start Date: 2018-11-01

End Date: 2023-11-30

Contract Duration: 1,855 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: GADSDEN JOB CORPS CENTER OPERATIONS WITH OUTREACH&ADMISSIONS AND CAREER TRANSITION SERVICES

Place of Performance

Location: GADSDEN, ETOWAH County, ALABAMA, 35901

State: Alabama Government Spending

Plain-Language Summary

Department of Labor obligated $43.5 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC for work described as: GADSDEN JOB CORPS CENTER OPERATIONS WITH OUTREACH&ADMISSIONS AND CAREER TRANSITION SERVICES Key points: 1. Contract awarded via full and open competition, indicating a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee, which can incentivize cost control but also carries risk. 3. The duration of the contract is over 5 years, suggesting a significant, long-term service requirement. 4. The NAICS code 611519 points to vocational training services, a key area for workforce development.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure requires careful monitoring to ensure costs remain reasonable and performance targets are met. Benchmarking against similar vocational training contracts is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, suggesting a robust process to solicit bids. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive award process aims to secure services at a reasonable cost, ultimately benefiting taxpayers by avoiding inflated prices.

Public Impact

Provides essential job training and career services to individuals in Alabama. Supports workforce development initiatives by equipping participants with marketable skills. The contract's success directly impacts the effectiveness of the Job Corps program in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts require diligent oversight to manage costs and ensure contractor performance aligns with incentives.
The exclusion of sources in the competition method warrants a review to ensure fairness and prevent potential limitations on future competition.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Long contract duration indicates a stable and ongoing need for these critical services.

Sector Analysis

This contract falls within the vocational training sector, specifically 'Other Technical and Trade Schools'. Spending in this sector is crucial for workforce development and addressing skills gaps. Benchmarks for similar contracts would focus on cost per student and program completion rates.

Small Business Impact

Analysis of small business participation is not explicitly detailed in the provided data. Further review would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for oversight. Regular performance reviews and financial audits are critical to ensure accountability and effective use of funds.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Cost Plus Incentive Fee contract type requires careful monitoring.
Potential for limited competition due to 'exclusion of sources' clause.
Lack of explicit small business participation data.
Need for benchmarking against similar contracts to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.5 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC. GADSDEN JOB CORPS CENTER OPERATIONS WITH OUTREACH&ADMISSIONS AND CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC.

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 $43.5 million.

What is the period of performance?

Start: 2018-11-01. End: 2023-11-30.

What is the cost per participant and how does it compare to national averages for similar Job Corps center operations?

The provided data does not include specific cost per participant figures. A detailed analysis would require breaking down the total contract value by the number of participants served over the contract period. Comparing this calculated cost to national averages for Job Corps centers would reveal efficiency and potential areas for cost savings or identify if the current rate is justified by service scope or location.

What specific criteria were used to exclude sources during the 'full and open competition after exclusion of sources' process, and did this exclusion limit competitive pricing?

The data does not specify the reasons for excluding sources. A review of the solicitation documents and award justification would be necessary to understand the criteria. While intended to ensure specific capabilities, such exclusions can sometimes limit the number of bidders, potentially impacting the competitiveness of the final price achieved for the taxpayer.

How effectively does the Cost Plus Incentive Fee structure incentivize Chugach Training to achieve key performance indicators for student success and cost control?

The effectiveness of the CPIF structure depends on the specific incentive targets and fee adjustments outlined in the contract. Without access to these details, it's difficult to assess. A review of performance reports and contractor achievement against these metrics would be needed to determine if the fee structure is driving desired outcomes in both student success rates and efficient resource management.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630J3-18-R-00003

Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation

Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,340,028

Exercised Options: $48,340,028

Current Obligation: $43,530,465

Actual Outlays: $37,073,738

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $12,714,738

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline