Department of Labor awards $43.7M contract to ODLE MANAGEMENT GROUP for technical school services

Contract Overview

Contract Amount: $43,719,515 ($43.7M)

Contractor: Odle Management Group, L.L.C.

Awarding Agency: Department of Labor

Start Date: 2017-05-26

End Date: 2022-10-31

Contract Duration: 1,984 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF TULSA JOB CORPS CENTER W/OACTS

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74110

State: Oklahoma Government Spending

Plain-Language Summary

Department of Labor obligated $43.7 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: IGF::OT::IGF TULSA JOB CORPS CENTER W/OACTS Key points: 1. Contract awarded to ODLE MANAGEMENT GROUP, L.L.C. for "Other Technical and Trade Schools" services. 2. The contract has a total value of $43,719,515 and a duration of 1984 days. 3. Competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a specific but open process. 4. The contract type is 'COST PLUS INCENTIVE FEE', which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract's cost-plus-incentive-fee structure suggests potential for costs to exceed initial estimates. Benchmarking against similar technical school contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies a competitive process but with specific pre-qualifications or exclusions. This could impact price discovery by limiting the pool of potential bidders.

Taxpayer Impact: Taxpayer funds are being used for technical and trade school services, with the ultimate impact on value dependent on the effectiveness and efficiency of the services provided.

Public Impact

Provides vocational training and technical education, potentially impacting workforce development. The contract's duration and value suggest a significant investment in educational services. The specific nature of 'Other Technical and Trade Schools' may serve niche or specialized workforce needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can incentivize contractor to increase costs.
Long contract duration increases risk of scope creep and cost escalation.
Exclusion of sources in competition may limit competitive pricing.

Positive Signals

Full and open competition ensures a broad range of potential bidders.
Contract aims to provide essential technical and trade education.
Definitive contract provides a clear framework for services.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' category, which supports workforce development and specialized training. Spending in this sector is crucial for equipping individuals with in-demand skills.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight by the Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management, is crucial for ensuring the effective delivery of services and proper use of funds under this contract.

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.
Long contract duration increases risk.
Limited transparency on specific training outcomes.
Rationale for source exclusion needs further clarification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.7 million to ODLE MANAGEMENT GROUP, L.L.C.. IGF::OT::IGF TULSA JOB CORPS CENTER W/OACTS

Who is the contractor on this award?

The obligated recipient is ODLE MANAGEMENT GROUP, L.L.C..

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 $43.7 million.

What is the period of performance?

Start: 2017-05-26. End: 2022-10-31.

What specific technical and trade skills are being provided under this contract, and how do they align with current labor market demands?

The contract specifies services under NAICS code 611519, 'Other Technical and Trade Schools.' While the exact skills are not detailed, this typically includes vocational programs in areas like automotive repair, HVAC, culinary arts, or specialized industrial trades. Alignment with labor market demands would require analyzing the curriculum and placement rates of graduates.

What are the key performance indicators (KPIs) for this contract, and how is ODLE MANAGEMENT GROUP being incentivized to achieve them?

As a Cost Plus Incentive Fee (CPIF) contract, ODLE MANAGEMENT GROUP is incentivized to meet specific performance targets while managing costs. The contract likely includes defined KPIs related to student completion rates, job placement, or skill proficiency. The incentive fee is earned based on achieving these targets within agreed-upon cost parameters.

What was the rationale for excluding certain sources during the 'full and open competition' process?

The exclusion of sources in a 'full and open competition' scenario typically occurs when specific capabilities, certifications, or past performance are required that only a subset of potential offerors possess. The agency would need to justify that these exclusions were necessary and did not unduly restrict competition, ensuring that the remaining pool still allowed for fair and effective price discovery.

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: DOL-ETA-15-R-00094

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Eckerd Youth Alternatives, Inc.

Address: 9937 E BELL RD STE 110, SCOTTSDALE, AZ, 85260

Business Categories: Asian Pacific American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $59,003,826

Exercised Options: $54,806,334

Current Obligation: $43,719,515

Actual Outlays: $28,160,648

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline