Department of Labor awards $66.4M contract to Horizons Youth Services for technical training

Contract Overview

Contract Amount: $66,424,381 ($66.4M)

Contractor: Horizons Youth Services, L.C.

Awarding Agency: Department of Labor

Start Date: 2017-05-03

End Date: 2022-05-31

Contract Duration: 1,854 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF NORTH TEXAS JCC OA/CTS

Place of Performance

Location: MCKINNEY, COLLIN County, TEXAS, 75069

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $66.4 million to HORIZONS YOUTH SERVICES, L.C. for work described as: IGF::OT::IGF NORTH TEXAS JCC OA/CTS Key points: 1. Contract awarded to Horizons Youth Services, L.C. for $66.4M. 2. Service category is Other Technical and Trade Schools (NAICS 611519). 3. Contract type is Cost Plus Incentive Fee (CPIF). 4. Contract duration is 1854 days. 5. Awarded by the Department of Labor, Office of the Assistant Secretary for Administration and Management.

Value Assessment

Rating: fair

The Cost Plus Incentive Fee (CPIF) contract type allows for shared savings, potentially encouraging efficiency. However, CPIF can lead to higher costs if targets are not met effectively. Benchmarking against similar technical training contracts 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, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Provides vocational and technical training services, impacting individuals seeking new skills. Supports workforce development initiatives by preparing individuals for specific trades. Contract duration of over 5 years suggests a long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type can lead to cost overruns if not managed closely.
Lack of specific performance metrics makes it difficult to assess effectiveness.
No indication of small business participation.

Positive Signals

Awarded through full and open competition.
Long contract duration indicates sustained demand for services.
Potential for cost savings through incentive fee structure.

Sector Analysis

The 'Other Technical and Trade Schools' sector (NAICS 611519) encompasses a wide range of vocational training. Spending in this sector is often tied to workforce development and re-training programs, with contract values varying significantly based on scope and duration.

Small Business Impact

The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract. Further investigation 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 this contract. Oversight would focus on ensuring the contractor meets performance requirements and that the CPIF structure is managed effectively to control costs.

Related Government Programs

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

Risk Flags

Lack of specific performance metrics.
CPIF contract type carries inherent cost overrun risk.
No clear indication of small business utilization.
Limited detail on the specific training provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $66.4 million to HORIZONS YOUTH SERVICES, L.C.. IGF::OT::IGF NORTH TEXAS JCC OA/CTS

Who is the contractor on this award?

The obligated recipient is HORIZONS YOUTH SERVICES, 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 $66.4 million.

What is the period of performance?

Start: 2017-05-03. End: 2022-05-31.

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

The contract details do not specify the exact technical and trade skills covered. Understanding this alignment is crucial for assessing the long-term value and effectiveness of the training. Without this information, it's difficult to determine if the program is equipping individuals with relevant and in-demand competencies, thus impacting its overall contribution to workforce development and taxpayer return on investment.

What are the performance metrics and incentive targets associated with the Cost Plus Incentive Fee (CPIF) structure for this contract?

The specific performance metrics and incentive targets for the CPIF structure are not detailed in the provided data. This lack of transparency makes it challenging to evaluate the contractor's performance and the effectiveness of the incentive mechanism in driving desired outcomes. Understanding these targets is essential for assessing whether the government is achieving optimal value and controlling costs effectively.

How does the per-student cost under this contract compare to industry benchmarks for similar technical and trade school programs?

A direct per-unit cost benchmark is not available without knowing the number of students trained or the specific services provided per student. However, the total contract value of $66.4 million over approximately five years suggests a significant investment. Comparing this to industry averages for vocational training programs, considering the scope and complexity of the skills taught, would be necessary to determine if the pricing is competitive and represents good value for taxpayers.

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-00054

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Endless Horizons Inc

Address: 3586 HORIZONS WAY, HARRISONBURG, VA, 22802

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $88,664,358

Exercised Options: $70,126,748

Current Obligation: $66,424,381

Actual Outlays: $29,833,434

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline