Labor Department awards $80M to Career Systems Development Corp for technical training, facing fair competition
Contract Overview
Contract Amount: $80,213,725 ($80.2M)
Contractor: Career Systems Development Corporation
Awarding Agency: Department of Labor
Start Date: 2018-02-01
End Date: 2023-06-30
Contract Duration: 1,975 days
Daily Burn Rate: $40.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: IGF::OT::IGF GUTHRIE JCC
Place of Performance
Location: GUTHRIE, LOGAN County, OKLAHOMA, 73044
State: Oklahoma Government Spending
Plain-Language Summary
Department of Labor obligated $80.2 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: IGF::OT::IGF GUTHRIE JCC Key points: 1. Contract value of $80.2M for technical and trade school services. 2. Competition was full and open, indicating a competitive bidding process. 3. Risk appears moderate given the contract type and duration. 4. Spending is within the 'Other Technical and Trade Schools' sector.
Value Assessment
Rating: fair
The contract's cost-plus incentive fee structure suggests potential for cost overruns if not managed carefully. Benchmarking against similar technical training contracts is needed to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which generally promotes price discovery and competitive pricing. The award to Career Systems Development Corporation suggests they offered the best value under the solicitation.
Taxpayer Impact: Taxpayer funds are being used for workforce development through technical training, aiming for improved employment outcomes.
Public Impact
Provides vocational and technical training services to individuals. Aims to enhance workforce skills and employability. Supports the Department of Labor's mission in career development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee contract type can lead to higher costs.
- Long contract duration (over 4 years) increases exposure to changing market conditions.
Positive Signals
- Full and open competition promotes competitive pricing.
- Contract supports workforce development initiatives.
Sector Analysis
This contract falls under the 'Other Technical and Trade Schools' sector, which includes institutions providing vocational and technical education. Spending benchmarks for this sector would typically focus on per-student costs and program completion rates.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract is managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Oversight would focus on performance, cost control, and adherence to training program objectives.
Related Government Programs
- Other Technical and Trade Schools
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Cost-plus incentive fee contract type.
- Long contract duration.
- No small business awardee indicated.
- Lack of specific performance outcome data in the provided details.
Tags
other-technical-and-trade-schools, department-of-labor, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $80.2 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. IGF::OT::IGF GUTHRIE JCC
Who is the contractor on this award?
The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $80.2 million.
What is the period of performance?
Start: 2018-02-01. End: 2023-06-30.
What is the expected return on investment for this workforce development contract in terms of job placement and wage increases for participants?
The return on investment is a critical metric for workforce development programs. It would be assessed by tracking participant employment rates, wage levels post-training, and retention in the workforce over a defined period. Comparing these outcomes against program costs and established benchmarks for similar training initiatives is essential for determining effectiveness and value for taxpayer money.
What are the specific performance metrics and quality assurance measures in place to ensure the effectiveness of the training provided by Career Systems Development Corporation?
Effectiveness is ensured through defined performance metrics, likely including student completion rates, skill attainment assessments, and post-training employment success. Quality assurance measures would involve regular program reviews, instructor evaluations, curriculum updates, and potentially third-party audits to verify adherence to standards and the achievement of desired learning outcomes.
How does the cost-plus incentive fee structure mitigate or exacerbate the risk of cost overruns compared to fixed-price contracts for similar training services?
A cost-plus incentive fee (CPIF) contract shares cost risks and rewards between the government and contractor. While it allows for flexibility and can incentivize cost efficiency through shared savings, it also carries a higher risk of cost overruns if the target costs are not well-defined or if contractor performance is suboptimal, leading to increased government expenditure compared to a fixed-price arrangement.
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-00031
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $104,808,196
Exercised Options: $104,808,196
Current Obligation: $80,213,725
Actual Outlays: $54,085,458
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-02-01
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2025-07-01
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