Department of Labor's $40.2M Job Corps contract awarded to SERRATO CORPORATION for technical and trade school services

Contract Overview

Contract Amount: $40,201,547 ($40.2M)

Contractor: Serrato Corporation

Awarding Agency: Department of Labor

Start Date: 2018-05-01

End Date: 2022-05-31

Contract Duration: 1,491 days

Daily Burn Rate: $27.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CINCINNATI JOB CORPS CENTER WITH OHIO OACTS

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45214

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $40.2 million to SERRATO CORPORATION for work described as: IGF::OT::IGF CINCINNATI JOB CORPS CENTER WITH OHIO OACTS Key points: 1. Contract value of $40.2M over 4 years suggests significant investment in vocational training. 2. Awarded via full and open competition, indicating a potentially competitive bidding process. 3. The contract's duration of 1491 days (approx. 4 years) allows for sustained program delivery. 4. Fixed-price contract type may offer cost certainty for the government. 5. Services provided under NAICS code 611519 (Other Technical and Trade Schools) target specific workforce development needs. 6. The contract was awarded to a single entity, SERRATO CORPORATION, highlighting potential specialization or market concentration.

Value Assessment

Rating: fair

The contract value of $40.2 million over approximately four years for operating a Job Corps center represents a substantial investment. Benchmarking this against similar contracts for vocational training centers is crucial for a definitive value assessment. Without specific per-student costs or performance metrics, it's difficult to ascertain if this represents excellent value for money. The fixed-price nature provides some cost predictability, but the overall efficiency and effectiveness of the services delivered will ultimately determine the true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was initially open, certain sources may have been excluded prior to the final award. This suggests a potentially robust bidding process, but the exclusion of sources warrants further investigation to understand its impact on the competitive landscape and final pricing. The presence of 4 bids indicates some level of competition.

Taxpayer Impact: A full and open competition, even with exclusions, generally aims to secure the best value for taxpayers by encouraging multiple bidders to offer competitive pricing. The number of bids received provides a baseline for price discovery.

Public Impact

Benefits individuals seeking vocational training and career development opportunities. Delivers essential technical and trade education services to prepare students for the workforce. Geographic impact is concentrated in Ohio, as indicated by the state code 'OH'. Workforce implications include training for a skilled labor force and potential employment for instructors and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources, impacting price discovery.
Lack of detailed performance metrics makes it difficult to assess the effectiveness of training.
The fixed-price contract might disincentivize cost-saving innovations by the contractor if not structured with performance incentives.

Positive Signals

Awarded through a competitive process, suggesting an effort to secure reasonable pricing.
The contract's long duration allows for consistent service delivery and program stability.
Focus on technical and trade schools addresses critical workforce development needs.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical education. The market for operating Job Corps centers involves specialized educational service providers. Comparable spending benchmarks would involve analyzing other federal or state contracts for similar workforce development programs and educational institutions. The total contract value of $40.2 million over four years indicates a significant program size within this niche.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract (ss: false, sb: false). Therefore, the primary contractor, SERRATO CORPORATION, is not a small business for this award. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's utilization plans and actual subcontracting performance.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Labor's contracting officers and program managers. Accountability measures are usually tied to contract performance clauses and reporting requirements. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would likely fall under the Department of Labor's Office of Inspector General for any potential fraud, waste, or abuse.

Related Government Programs

Department of Labor Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Vocational Training Grants
Adult Education and Literacy Programs

Risk Flags

Potential for reduced competition due to source exclusions.
Lack of readily available performance outcome data (e.g., job placement rates).
Need for detailed benchmarking of per-student costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $40.2 million to SERRATO CORPORATION. IGF::OT::IGF CINCINNATI JOB CORPS CENTER WITH OHIO OACTS

Who is the contractor on this award?

The obligated recipient is SERRATO 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 $40.2 million.

What is the period of performance?

Start: 2018-05-01. End: 2022-05-31.

What is the historical spending pattern for SERRATO CORPORATION with the Department of Labor?

A review of historical spending for SERRATO CORPORATION with the Department of Labor would require accessing contract databases and analyzing past awards. Without specific data, it's impossible to determine if this $40.2 million contract represents a significant increase or decrease in their federal contract portfolio. Understanding their past performance on similar contracts, including any issues or successes, would provide valuable context for assessing their track record on this current award. This analysis would involve looking at contract values, durations, types, and any documented performance evaluations.

How does the per-student cost of this contract compare to other Job Corps centers or similar vocational training programs?

To compare the per-student cost, we would need the total number of students served or expected to be served under this contract, as well as the total contract value ($40.2 million). Dividing the total cost by the number of students would yield a per-student cost. This figure would then need to be benchmarked against the average per-student cost for other Department of Labor Job Corps centers and potentially against similar vocational training programs funded by other federal agencies or state governments. Variations in curriculum, student support services, and geographic location can significantly influence per-student costs, making direct comparisons challenging without detailed context.

What specific technical and trade skills are being taught under this contract, and what is the success rate of graduates in securing employment?

The NAICS code 611519 indicates 'Other Technical and Trade Schools,' suggesting a broad range of vocational training. Specific skills taught would be detailed in the contract's Statement of Work (SOW). To assess program effectiveness, we would need to examine performance metrics outlined in the contract, such as graduation rates, job placement rates, and starting salaries of graduates. The Department of Labor likely collects this data, and it would be crucial for evaluating the return on investment for this $40.2 million expenditure. Without this data, the 'value-for-money' assessment remains incomplete.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The exclusion of sources in a competitive bidding process, even under a 'full and open' umbrella, typically occurs for specific, documented reasons. These could include failure to meet minimum qualifications, non-responsiveness to solicitation requirements, or past performance issues. The contracting agency is required to have a justifiable basis for any source exclusion. Understanding these reasons is critical for assessing whether the competition was truly as robust as intended and if potential cost savings were foregone due to these exclusions. This information is usually found in the contract file or procurement documentation.

What are the key performance indicators (KPIs) for SERRATO CORPORATION under this contract, and how is performance being monitored?

Key Performance Indicators (KPIs) for a Job Corps center contract typically revolve around student recruitment, retention, training completion, job placement rates, and employer satisfaction. The contract's SOW and Performance Work Statement (PWS) would detail these KPIs and the associated performance standards. Monitoring would likely involve regular reporting by the contractor, site visits by government representatives, and potentially independent evaluations. The Department of Labor's contracting officer and project managers are responsible for overseeing performance and ensuring compliance with the contract terms.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL-ETA-17-R-00021

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 135 WEST COUNCIL ST, TUCSON, AZ, 85701

Business Categories: Category Business, Community Developed Corporation Owned Firm, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $58,888,416

Exercised Options: $44,604,200

Current Obligation: $40,201,547

Actual Outlays: $29,972,040

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $79,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline