Department of Labor awards $57.2M contract for technical and trade school services to Adams and Associates Inc

Contract Overview

Contract Amount: $57,178,613 ($57.2M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2019-07-15

End Date: 2024-07-31

Contract Duration: 1,843 days

Daily Burn Rate: $31.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF KITTRELL JCC W/OACTS

Place of Performance

Location: KITTRELL, VANCE County, NORTH CAROLINA, 27544

State: North Carolina Government Spending

Plain-Language Summary

Department of Labor obligated $57.2 million to ADAMS AND ASSOCIATES INC for work described as: IGF::OT::IGF KITTRELL JCC W/OACTS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee, which can incentivize cost control but also carries inherent risk. 3. The duration of the contract is over 1800 days, indicating a long-term need for these services. 4. The North Carolina location for service delivery may have implications for local workforce development. 5. The specific NAICS code (611519) points to specialized technical and trade school services. 6. The contractor, Adams and Associates Inc., has secured this significant award, indicating a level of established capability.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Incentive Fee contract is challenging without detailed cost breakdowns and performance metrics. The total award amount of $57.2 million over approximately five years suggests a substantial investment in technical and trade school services. Comparisons to similar contracts for vocational training or educational support would be necessary to assess if the pricing is competitive. The incentive fee structure implies that performance and cost targets are in place, but the effectiveness of these incentives in driving value for money requires further scrutiny of the contract's performance history and final costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 8 bidders suggests a reasonably competitive environment for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide a clearer picture of the competition's intensity.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are likely individuals seeking technical and trade skills development, potentially leading to improved employment opportunities. The services delivered are expected to be in the realm of vocational training and educational support, aligning with the NAICS code. The contract's geographic impact is centered in North Carolina, suggesting a focus on workforce development within that state. Workforce implications include potential job creation for instructors and support staff within the contracted educational institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to cost overruns if not managed diligently.
The long contract duration may reduce flexibility to adapt to changing training needs or market demands.
Dependence on a single contractor for a significant period could limit future competitive opportunities or innovation.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor has secured a significant award, suggesting established capabilities and experience.
The contract aims to provide essential technical and trade school services, addressing a clear government need.

Sector Analysis

The contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. This sector is crucial for developing a skilled workforce aligned with industry demands. The market size for federal government contracts in this area can fluctuate based on agency needs for training and development programs. Comparable spending benchmarks would involve looking at other federal agencies' investments in similar technical training or educational support services, particularly those managed by the Department of Labor.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the 'small business set-aside' flag is false and the 'small business' flag is also false. This suggests the contract was not specifically targeted towards small businesses. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Inspector General, responsible for auditing and investigating federal programs to ensure efficiency and prevent fraud. Accountability measures are inherent in the Cost Plus Incentive Fee structure, which ties contractor payment to performance and cost targets. Transparency is generally facilitated through contract award databases and public reporting, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Department of Labor Workforce Development Programs
Federal Vocational Training Initiatives
Skills Gap Training Contracts
Post-Secondary Vocational Education Services

Risk Flags

Cost Plus Incentive Fee contract type requires careful monitoring to ensure cost control.
Long contract duration may limit adaptability to evolving training needs.
Specific performance metrics and incentive details are not publicly available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $57.2 million to ADAMS AND ASSOCIATES INC. IGF::OT::IGF KITTRELL JCC W/OACTS

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES INC.

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 $57.2 million.

What is the period of performance?

Start: 2019-07-15. End: 2024-07-31.

What is the track record of Adams and Associates Inc. with federal contracts, particularly within the Department of Labor?

Information on Adams and Associates Inc.'s track record with federal contracts, especially within the Department of Labor, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases (like SAM.gov or FPDS) to examine past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Understanding their past performance is crucial for assessing their capability to successfully execute this $57.2 million contract. Without this historical data, it's difficult to gauge their reliability and past success in delivering similar services.

How does the awarded amount of $57.2 million compare to similar technical and trade school service contracts awarded by the federal government?

Comparing the $57.2 million award to similar contracts requires access to a broader dataset of federal procurement information. The provided data indicates this is a Cost Plus Incentive Fee contract with a duration of approximately 1843 days (over 5 years) for 'Other Technical and Trade Schools' (NAICS 611519) within the Department of Labor. To benchmark effectively, one would need to identify other contracts for vocational training, technical education, or similar services awarded by various federal agencies over comparable timeframes. Factors like the scope of services, geographic location, and specific training outcomes would need to be considered for a meaningful comparison. The current data alone does not provide sufficient context for a direct value-for-money assessment against market rates.

What are the specific performance metrics and incentive fee structures associated with this contract?

The provided data specifies the contract type as 'Cost Plus Incentive Fee' (CPIF) but does not detail the specific performance metrics or the structure of the incentive fees. In a CPIF contract, the final profit is determined by the contractor's ability to meet or exceed certain cost and performance targets. The government and contractor negotiate these targets before work begins. Typical performance metrics in educational or training contracts might include student completion rates, job placement percentages, or specific skill acquisition benchmarks. The incentive fee would be a portion of the total fee that is adjusted based on performance against these metrics. Without the contract's statement of work and detailed clauses, the exact nature of these metrics and incentives remains unknown.

What is the anticipated impact of this contract on workforce development in North Carolina?

This contract, awarded to Adams and Associates Inc. and valued at $57.2 million, is expected to have a significant impact on workforce development in North Carolina, given its stated service location. The contract's focus on 'Other Technical and Trade Schools' (NAICS 611519) suggests it will fund programs designed to equip individuals with specific vocational skills. This could lead to increased availability of trained workers in fields facing labor shortages within the state. The long duration of the contract (over 5 years) implies a sustained effort to build capacity and provide ongoing training opportunities, potentially benefiting local economies through improved employment rates and a more skilled labor pool.

How does the 'full and open competition' with 8 bidders influence the cost-effectiveness for taxpayers?

The fact that this contract was awarded under 'full and open competition' with 8 bidders is a positive indicator for cost-effectiveness. This level of competition suggests that multiple companies were vying for the contract, which typically drives down prices as bidders seek to offer the most competitive proposals. Having 8 bidders implies a healthy market interest and a robust selection process, reducing the likelihood of the government overpaying. While the contract type is Cost Plus Incentive Fee, which has its own cost management considerations, the initial competitive bidding process provides a strong foundation for achieving value for taxpayer money by ensuring a market-driven price point.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630J3-19-R-00001

Offers Received: 8

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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: $60,956,932

Exercised Options: $60,956,932

Current Obligation: $57,178,613

Actual Outlays: $55,829,394

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $2,888,979

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline