Department of Labor awards $43.8M technical school contract to MINACT, INC. with 3 bidders

Contract Overview

Contract Amount: $43,760,157 ($43.8M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2017-03-10

End Date: 2024-06-05

Contract Duration: 2,644 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF SHREVEPORT JCC

Place of Performance

Location: SHREVEPORT, CADDO County, LOUISIANA, 71109

State: Louisiana Government Spending

Plain-Language Summary

Department of Labor obligated $43.8 million to MINACT, INC for work described as: IGF::OT::IGF SHREVEPORT JCC Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee, which can incentivize cost control. 3. The duration of the contract is substantial at 2644 days, suggesting a long-term need. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized technical training services. 5. The contract was awarded to a single entity, MINACT, INC. 6. The contract has been active since March 2017 and is set to end in June 2024.

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 $43.8 million over its extended duration suggests a significant investment in technical training. Comparisons to similar contracts for vocational or technical education services would be necessary to assess if the pricing is competitive. The incentive fee structure implies that performance and cost savings could influence the final expenditure, making a direct value-for-money assessment difficult at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. With three bidders participating, the competition level appears moderate. A higher number of bidders typically suggests greater price discovery and potentially more competitive pricing for the government. However, the specific nature of specialized technical training services might limit the pool of qualified contractors.

Taxpayer Impact: A competitive bidding process, even with three bidders, generally benefits taxpayers by encouraging lower prices and better service offerings compared to sole-source or limited competition scenarios.

Public Impact

Individuals seeking specialized technical and trade skills training are the primary beneficiaries. The contract facilitates the delivery of educational and training services. The contract is geographically located in Louisiana (LA), impacting the local workforce and economy. It supports the development of a skilled workforce, potentially addressing specific industry needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can sometimes lead to higher final costs if not managed rigorously.
The long duration of the contract requires sustained oversight to ensure continued relevance and effectiveness.
Assessing the specific outcomes and return on investment for the training provided is crucial.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The incentive fee structure can align contractor performance with government objectives.
The contract addresses a clear need for specialized technical training.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on technical and vocational education. The market for such services is driven by industry demand for skilled labor and government initiatives to support workforce development. Comparable spending benchmarks would involve analyzing other federal contracts for similar training programs, as well as state and private sector investments in vocational education. The size of this contract is significant within its niche.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, there is no explicit information regarding subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether MINACT, INC. engages small businesses as subcontractors for any part of the training delivery or support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Labor. Accountability measures are inherent in the Cost Plus Incentive Fee structure, which ties payment to performance and cost targets. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office may conduct audits or investigations if specific concerns arise regarding contract performance or financial management.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
Federal Job Training Programs
Vocational Rehabilitation Services
Department of Labor Training Contracts

Risk Flags

Contract duration is exceptionally long.
Cost Plus Incentive Fee contracts require careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.8 million to MINACT, INC. IGF::OT::IGF SHREVEPORT JCC

Who is the contractor on this award?

The obligated recipient is MINACT, 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 $43.8 million.

What is the period of performance?

Start: 2017-03-10. End: 2024-06-05.

What is the specific nature of the technical training provided under this contract?

The North American Industry Classification System (NAICS) code 611519, 'Other Technical and Trade Schools,' indicates that the training focuses on specialized vocational and technical skills. While the exact curriculum is not detailed in the provided data, such contracts typically cover fields like advanced manufacturing, IT certifications, healthcare support roles, or skilled trades. The Department of Labor likely uses these services to equip individuals with in-demand skills, potentially targeting specific industries facing labor shortages or assisting individuals in transitioning to new career paths. Further details on the curriculum and target occupations would be available in the contract statement of work.

How does the Cost Plus Incentive Fee (CPIF) structure work for this contract?

A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and receives an incentive fee based on meeting or exceeding certain performance targets. For this Department of Labor contract, MINACT, INC. would be reimbursed for its direct and indirect costs associated with providing the training. The incentive fee would be determined by pre-negotiated targets, which could relate to factors such as student completion rates, job placement success, cost savings below a target, or adherence to specific training quality standards. The final fee paid to MINACT, INC. would be a combination of the actual costs incurred and the calculated incentive fee, subject to a ceiling price.

What is the historical spending pattern for this specific contract or similar services?

The provided data shows a total award amount of $43,760,156.89 for this contract, which has been active from March 10, 2017, to June 5, 2024. This indicates a consistent level of spending over its duration. To understand historical patterns, one would need to examine the annual expenditure data for this contract, looking at how much was obligated and spent each fiscal year. Additionally, comparing this spending to previous contracts for similar technical training services awarded by the Department of Labor or other federal agencies would provide context on whether this represents a typical or outlier investment in such programs.

What are the key performance indicators (KPIs) used to evaluate MINACT, INC.'s performance?

While the specific Key Performance Indicators (KPIs) are not detailed in the summary data, they are crucial for a Cost Plus Incentive Fee (CPIF) contract. For a technical training contract, typical KPIs would likely include metrics such as student enrollment rates, course completion rates, trainee satisfaction scores, post-training assessment results, and, most importantly, job placement rates in relevant fields. The 'incentive' portion of the CPIF structure directly links the contractor's fee to achieving or exceeding these pre-defined performance targets. The Department of Labor would monitor these KPIs closely to ensure the effectiveness of the training and to determine the final incentive fee paid to MINACT, INC.

What is the potential impact of this contract on the Louisiana workforce?

This contract, awarded to MINACT, INC. and operating in Louisiana (LA), has the potential to significantly impact the state's workforce. By providing specialized technical and trade school training, it aims to equip residents with skills that are in demand by employers. Successful completion of the training programs could lead to increased employment opportunities and higher earning potential for participants. Furthermore, by addressing specific skill gaps, the contract can contribute to the overall economic development of Louisiana by supplying a more qualified labor pool to local industries, potentially attracting new businesses or supporting the expansion of existing ones.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL-ETA-16-R-00024

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Minact Inc

Address: 5220 KEELE ST, JACKSON, MS, 39206

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $57,081,666

Exercised Options: $52,642,059

Current Obligation: $43,760,157

Actual Outlays: $26,797,762

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline