Department of Labor awards $41.1M contract to RES-CARE, INC for technical and trade school services

Contract Overview

Contract Amount: $41,147,962 ($41.1M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2018-05-01

End Date: 2019-03-31

Contract Duration: 334 days

Daily Burn Rate: $123.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: GARY; REQUISTION TO INITIATE A SHORT TERM CONTRACT

Place of Performance

Location: SAN MARCOS, HAYS County, TEXAS, 78667

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $41.1 million to RES-CARE, INC for work described as: GARY; REQUISTION TO INITIATE A SHORT TERM CONTRACT Key points: 1. The contract value of $41.1M is significant for 'Other Technical and Trade Schools'. 2. RES-CARE, INC is the sole awardee under a full and open competition. 3. The contract duration is 334 days, indicating a short-term need. 4. The 'Other Technical and Trade Schools' sector is broad and may include various specialized training services.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount is substantial, and without benchmarks for similar services, assessing value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within a Cost Plus Fixed Fee structure for this service need further examination.

Taxpayer Impact: Taxpayer funds are being used for technical and trade school services, the efficiency of which depends on the effectiveness of the training provided.

Public Impact

Provides essential training services that could enhance workforce skills. The use of taxpayer funds necessitates transparency in service delivery and outcomes. Potential impact on individuals seeking vocational training and employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of specific performance metrics makes outcome assessment challenging.
Limited information on the specific technical/trade skills being provided.

Positive Signals

Awarded under full and open competition.
Contract aims to fulfill a specific training need.

Sector Analysis

The 'Other Technical and Trade Schools' sector encompasses a wide range of vocational training. Spending in this area can vary greatly depending on the specific skills taught and the number of individuals trained.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and services are delivered effectively. The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this award.

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 Fixed Fee contract type.
Lack of detailed service description.
Potential for cost overruns.
No clear performance metrics provided.
Limited insight into specific training outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $41.1 million to RES-CARE, INC. GARY; REQUISTION TO INITIATE A SHORT TERM CONTRACT

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $41.1 million.

What is the period of performance?

Start: 2018-05-01. End: 2019-03-31.

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

The provided data categorizes the service under 'Other Technical and Trade Schools' (NAICS 611519) but does not specify the exact skills. Understanding the curriculum and its relevance to workforce needs is crucial for assessing the contract's value and effectiveness in preparing individuals for employment.

How will the effectiveness and efficiency of the training services be measured and ensured under the Cost Plus Fixed Fee structure?

Measuring effectiveness in a Cost Plus Fixed Fee contract requires clear performance metrics and deliverables. The Department of Labor must establish robust oversight to ensure that RES-CARE, INC is providing high-quality training and that costs are reasonable and allocable to the contract's objectives.

What is the rationale for awarding a Cost Plus Fixed Fee contract for these services, and what steps are in place to mitigate potential cost overruns?

Cost Plus Fixed Fee contracts are often used when the scope of work is not precisely defined or involves uncertainty. To mitigate overruns, the agency should have stringent cost monitoring, require detailed justifications for all expenses, and ensure the fixed fee is appropriate for the defined scope and risk.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Harris Hill Nursing Facility LLC (UEI: 081017660)

Address: 9901 LINN STATION RD, LOUISVILLE, KY, 40223

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

Financial Breakdown

Contract Ceiling: $41,836,534

Exercised Options: $41,836,534

Current Obligation: $41,147,962

Actual Outlays: $15,758,798

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOLETA17D0011

IDV Type: IDC

Timeline