Labor Department's $27M contract for technical schools awarded to Adams and Associates Inc. without competition

Contract Overview

Contract Amount: $26,995,881 ($27.0M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2017-12-01

End Date: 2019-07-31

Contract Duration: 607 days

Daily Burn Rate: $44.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ATTERBURY JCC BRIDGE CONTRACT

Place of Performance

Location: EDINBURGH, JOHNSON County, INDIANA, 46124

State: Indiana Government Spending

Plain-Language Summary

Department of Labor obligated $27.0 million to ADAMS AND ASSOCIATES INC for work described as: ATTERBURY JCC BRIDGE CONTRACT Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The lack of competition raises concerns about potential overpayment and the absence of market-driven pricing. 3. The contract duration of 607 days suggests a significant scope of work for technical and trade school services. 4. Awarded to a single vendor, indicating potential limitations in market exploration or a specific need for this contractor's expertise. 5. The contract's classification under 'Other Technical and Trade Schools' (NAICS 611519) points to specialized educational services.

Value Assessment

Rating: questionable

Benchmarking the value of this $26.99 million contract is challenging due to the lack of competitive bids. Cost-plus-fixed-fee contracts inherently carry a risk of higher costs compared to fixed-price contracts, especially when competition is absent. Without comparable contract data or a competitive bidding process, it's difficult to ascertain if the pricing reflects fair market value or if taxpayers received optimal value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach limits the government's ability to explore the full range of available vendors and potentially secure more favorable pricing through a competitive bidding process. The absence of multiple bidders means there was no direct comparison of technical capabilities or pricing from different companies.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for new or smaller businesses to enter into government contracts.

Public Impact

The primary beneficiaries are likely individuals seeking technical and trade school education or training services funded by the Department of Labor. The contract delivers educational services within the 'Other Technical and Trade Schools' sector. The geographic impact is specified as Indiana (SN: INDIANA), suggesting the services are primarily delivered or targeted within this state. Workforce implications could include the employment of instructors, administrative staff, and support personnel for the educational programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Cost-plus-fixed-fee structure can incentivize higher spending without strict cost controls.
Sole-source award limits transparency and potential for better value.
Contract duration and value suggest significant financial commitment without demonstrated market validation.

Positive Signals

Contract awarded to a specific entity (Adams and Associates Inc.) which may possess unique qualifications for the required services.
The contract is for technical and trade schools, potentially addressing a critical need for skilled workforce development.
The award is for a defined period, allowing for reassessment of needs and competition in the future.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on technical and trade schools (NAICS 611519). The market for such services can be diverse, ranging from large educational institutions to specialized training providers. Government spending in this area often aims to address workforce development needs, skill gaps, and vocational training. Benchmarking against similar government contracts for technical education is difficult without more specific details on the services provided and the competitive landscape.

Small Business Impact

The contract information indicates that small business participation was not a specific set-aside (SS: false) and there is no explicit mention of subcontracting goals (SB: false). This suggests that the primary contractor, Adams and Associates Inc., is likely not a small business, and there may be limited direct opportunities for small businesses to participate in this specific contract, either as prime contractors or through mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (SA). As a definitive contract, it is subject to standard federal procurement regulations and oversight. However, the lack of competition and the cost-plus-fixed-fee structure necessitate robust monitoring to ensure costs are reasonable and services are delivered effectively. The Inspector General's office for the Department of Labor would have jurisdiction for investigating any potential fraud, waste, or abuse.

Related Government Programs

Department of Labor Workforce Development Programs
Federal Vocational Training Initiatives
Government Contracts for Educational Services
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award lacks competitive justification.
Cost-plus-fixed-fee structure increases cost overrun risk.
Limited transparency due to non-competitive nature.
Potential for suboptimal value for taxpayer dollars.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $27.0 million to ADAMS AND ASSOCIATES INC. ATTERBURY JCC BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES 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 $27.0 million.

What is the period of performance?

Start: 2017-12-01. End: 2019-07-31.

What specific technical and trade school services does this contract entail, and how do they align with the Department of Labor's mission?

The contract falls under NAICS code 611519, 'Other Technical and Trade Schools.' While the specific services are not detailed in the provided data, this classification typically includes institutions offering vocational and technical training in fields such as automotive repair, cosmetology, culinary arts, and various skilled trades. These services align with the Department of Labor's mission to foster, promote, and develop the welfare of wage earners, job seekers, and retirees by improving working conditions, advancing opportunities, and protecting benefits. The contract likely supports initiatives aimed at equipping individuals with the skills needed for in-demand occupations, thereby addressing workforce development needs and promoting economic security.

Given the sole-source award, what mechanisms were in place to ensure the contractor, Adams and Associates Inc., was qualified and offered fair pricing?

When a contract is awarded on a sole-source basis, the government must still justify the award and ensure the contractor's qualifications and pricing are reasonable. This typically involves a justification and approval (J&A) process, where the agency details why full and open competition is not feasible or not in the government's best interest. For pricing, the agency would likely conduct a price analysis, which could involve reviewing the contractor's cost and pricing data, comparing it to historical prices paid for similar services (if available), or using other cost-reconciliation techniques. However, without competitive bids, the assurance of the 'best' price is inherently reduced compared to a competed procurement.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract, especially when awarded without competition?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. The primary risk for the government is that the total cost can exceed initial estimates, as the contractor is incentivized to incur costs to perform the work, while the fee remains constant. Without competition, this risk is amplified because there's no market pressure to control costs. The government must implement stringent oversight to scrutinize allowable costs and ensure the contractor is not overspending. The fixed fee itself might also be subject to negotiation, and without benchmarks, determining a fair fee can be challenging.

How does the contract's duration (607 days) and value ($26.99M) compare to typical spending in the 'Other Technical and Trade Schools' sector by the federal government?

The provided data does not include sufficient information to benchmark this contract against typical federal spending in the 'Other Technical and Trade Schools' sector. Federal spending in this area can vary widely based on agency needs, program scope, and duration. A $27 million contract over approximately 20 months (607 days) is a substantial award. To provide a meaningful comparison, one would need access to historical federal procurement data for similar NAICS codes, broken down by agency, contract type, and value, to identify trends and outliers.

What is the track record of Adams and Associates Inc. with federal contracts, particularly with the Department of Labor?

The provided data identifies Adams and Associates Inc. as the contractor for this specific Department of Labor contract. However, it does not offer details on their broader track record, including past performance ratings, previous contract values, or history with other federal agencies. A comprehensive assessment of their track record would require accessing federal procurement databases (like SAM.gov or FPDS) to review their contract history, performance evaluations, and any documented issues or successes on prior awards.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $27,880,550

Exercised Options: $27,880,550

Current Obligation: $26,995,881

Actual Outlays: $4,207,494

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline