Department of Labor awards $38.86M contract to SERRATO CORPORATION for Job Corps Center Operations

Contract Overview

Contract Amount: $38,860,329 ($38.9M)

Contractor: Serrato Corporation

Awarding Agency: Department of Labor

Start Date: 2019-02-01

End Date: 2024-02-29

Contract Duration: 1,854 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: FINCH-HENRY JOB CORPS CENTER OPERATIONS WITH OUTREACH&ADMISSIONS AND CAREER TRANSITION SERVICES

Place of Performance

Location: BATESVILLE, PANOLA County, MISSISSIPPI, 38606

State: Mississippi Government Spending

Plain-Language Summary

Department of Labor obligated $38.9 million to SERRATO CORPORATION for work described as: FINCH-HENRY JOB CORPS CENTER OPERATIONS WITH OUTREACH&ADMISSIONS AND CAREER TRANSITION SERVICES Key points: 1. The contract focuses on operational support for the FINCH-HENRY JOB CORPS CENTER. 2. Services include outreach, admissions, and career transition assistance. 3. The contract type is Cost Plus Incentive Fee, indicating shared risk and reward. 4. This award falls under the 'Other Technical and Trade Schools' NAICS code.

Value Assessment

Rating: fair

The Cost Plus Incentive Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar contracts for Job Corps center operations is needed to assess value.

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,' suggesting a competitive process but with specific source considerations. The price discovery mechanism is tied to the incentive fee structure.

Taxpayer Impact: Taxpayer funds are utilized for vocational training and support services aimed at improving workforce readiness.

Public Impact

Provides essential training and support services to individuals seeking vocational skills. Aims to improve employment outcomes and career pathways for participants. Supports the Department of Labor's mission to enhance workforce development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts require diligent oversight to control costs.
Lack of specific performance metrics makes it difficult to assess effectiveness.
Small business participation is not indicated.

Positive Signals

Full and open competition was utilized, promoting a fair marketplace.
The contract duration is substantial, indicating a long-term need for these services.

Sector Analysis

This contract falls within the education and training sector, specifically vocational and technical schools. Spending benchmarks for similar Job Corps center operations would provide context for the $38.86M award over its duration.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). Further analysis would be needed to determine if subcontracting opportunities were offered or pursued.

Oversight & Accountability

The contract is managed by the Office of the Assistant Secretary for Administration and Management. Oversight should focus on performance metrics, cost control, and adherence to program goals.

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 Cost Plus Incentive Fee structure.
Lack of detailed performance metrics in the provided data.
No explicit mention of small business subcontracting goals.
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 $38.9 million to SERRATO CORPORATION. FINCH-HENRY JOB CORPS CENTER OPERATIONS WITH OUTREACH&ADMISSIONS AND CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is SERRATO 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 $38.9 million.

What is the period of performance?

Start: 2019-02-01. End: 2024-02-29.

What are the specific performance metrics and incentive targets within the Cost Plus Incentive Fee structure, and how do they align with desired participant outcomes?

The provided data does not detail the specific performance metrics or incentive targets. A thorough review of the contract's statement of work and incentive clauses is necessary to understand how SERRATO CORPORATION's performance will be measured and rewarded. This is crucial for ensuring the contract effectively drives positive participant outcomes and justifies the incentive fee component.

How does the cost of this contract compare to similar Job Corps center operations contracts, considering the scope of services and duration?

Without access to a benchmark database of similar Job Corps center operations contracts, a direct cost comparison is difficult. Factors like geographic location, specific training programs offered, and participant demographics can significantly influence costs. A comparative analysis would require identifying comparable contracts and adjusting for these variables to assess cost-effectiveness.

What is the demonstrated track record of SERRATO CORPORATION in managing similar vocational training and career transition programs, and what are the key indicators of their effectiveness?

The provided data does not include information on SERRATO CORPORATION's past performance or specific effectiveness indicators for this type of contract. Assessing their track record would involve reviewing past performance evaluations, participant success rates (e.g., job placement, wage increases), and client feedback from previous government contracts.

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-00001

Offers Received: 10

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 135 WEST COUNCIL ST, TUCSON, AZ, 85701

Business Categories: 8(a) Program Participant, Category Business, Community Development Corporation, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Nonprofit Organization, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $44,792,994

Exercised Options: $44,694,455

Current Obligation: $38,860,329

Actual Outlays: $26,709,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline