Department of Labor's $40.7M Gerald R. Ford Job Corps Center contract awarded to Human Learning Systems LLC

Contract Overview

Contract Amount: $40,762,465 ($40.8M)

Contractor: Human Learning Systems LLC

Awarding Agency: Department of Labor

Start Date: 2018-08-01

End Date: 2023-09-30

Contract Duration: 1,886 days

Daily Burn Rate: $21.6K/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 OPERATION OF THE GERALD R. FORD JOB CORPS CENTER

Place of Performance

Location: GRAND RAPIDS, KENT County, MICHIGAN, 49507

State: Michigan Government Spending

Plain-Language Summary

Department of Labor obligated $40.8 million to HUMAN LEARNING SYSTEMS LLC for work described as: IGF::OT::IGF OPERATION OF THE GERALD R. FORD JOB CORPS CENTER Key points: 1. The contract represents a significant investment in vocational training and workforce development. 2. Competition dynamics for this contract are noted as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a potentially competitive process with specific criteria. 3. The contract duration of 1886 days (approximately 5 years) indicates a long-term commitment to service delivery. 4. The fixed-price contract type suggests that costs are largely predictable, though scope changes could impact the final value. 5. The contract is categorized under 'Other Technical and Trade Schools', highlighting its focus on specialized skills training. 6. The award to Human Learning Systems LLC signifies a specific provider chosen for their capabilities in operating the Job Corps center.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison to similar Job Corps center operations. The total award of $40.7 million over nearly five years averages to approximately $8.15 million annually. This figure needs to be assessed against the number of students served, the scope of training provided, and the operational costs of comparable centers. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging. However, the fixed-price nature of the contract provides some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior performance. The number of bidders is not explicitly stated, but the designation suggests a controlled competitive environment rather than a completely unrestricted one. This approach aims to balance competition with ensuring qualified bidders meet stringent criteria.

Taxpayer Impact: This procurement method aims to ensure a reasonable price by allowing multiple bidders to compete, while also ensuring that only capable and appropriate entities are considered, potentially leading to better service delivery for taxpayer funds.

Public Impact

The primary beneficiaries are students enrolled in the Gerald R. Ford Job Corps Center, who receive vocational training and support services. The contract delivers essential workforce development services, equipping individuals with skills for employment in various trades. The geographic impact is centered on the location of the Gerald R. Ford Job Corps Center in Michigan, serving the local and regional community. Workforce implications include the employment of instructors, administrative staff, and support personnel at the center, as well as the future employment of graduates in the labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational complexities are underestimated within the fixed-price structure.
Risk of service quality degradation if contractor focuses solely on cost containment rather than comprehensive student support.
Dependence on a single contractor for a critical workforce development function could pose continuity risks if performance issues arise.

Positive Signals

Long-term contract duration suggests a stable operational environment for the Job Corps center.
Fixed-price contract type offers budget predictability for the Department of Labor.
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a structured approach to selecting a capable provider.

Sector Analysis

The Job Corps program operates within the broader education and workforce development sector, which is a significant area of federal spending. This contract specifically falls under the sub-sector of vocational and technical training schools. The market for operating such centers involves organizations with expertise in education, training, and social services. Comparable spending benchmarks would involve looking at other Job Corps center contracts awarded by the Department of Labor or similar government-funded training initiatives.

Small Business Impact

The data indicates that small business participation (sb) is marked as false, and there is no explicit mention of small business set-asides (ss) for this contract. This suggests that the primary award was not specifically targeted towards small businesses, and subcontracting opportunities for small businesses are not a highlighted feature of this particular contract. The focus appears to be on the prime contractor's ability to manage the entire operation, rather than leveraging the small business ecosystem for specific components.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are embedded within the contract terms, requiring the contractor to meet specific performance standards and reporting requirements. Transparency is facilitated through contract award databases and potentially through program performance reports. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act (WIOA) Programs
Other Federal Job Corps Center Contracts
Vocational Rehabilitation Services
Adult Education and Literacy Programs

Risk Flags

Potential for cost overruns
Service quality concerns
Contractor performance issues
Limited competition risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $40.8 million to HUMAN LEARNING SYSTEMS LLC. IGF::OT::IGF OPERATION OF THE GERALD R. FORD JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is HUMAN LEARNING SYSTEMS LLC.

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 $40.8 million.

What is the period of performance?

Start: 2018-08-01. End: 2023-09-30.

What is the track record of Human Learning Systems LLC in operating Job Corps centers or similar educational facilities?

Assessing the track record of Human Learning Systems LLC is crucial for understanding their capability to manage the Gerald R. Ford Job Corps Center. Information on their past performance, including previous contracts with the Department of Labor or other federal agencies, would reveal their experience in areas such as student recruitment, academic and vocational instruction, student support services, and facility management. A review of past performance evaluations, any contract disputes, or awards for excellence would provide a comprehensive picture of their reliability and effectiveness. Without specific details on their history, it is difficult to definitively assess their suitability beyond the fact they were awarded this contract.

How does the annual cost per student for this contract compare to national averages for Job Corps centers?

To compare the annual cost per student, we first need to estimate the number of students served by the Gerald R. Ford Job Corps Center. The total contract value is $40,762,465.30 over approximately 1886 days (roughly 5.17 years). If we assume an average annual cost of $8,152,493 per year, and if the center typically serves, for example, 500 students annually, the cost per student would be approximately $16,305 per year. National averages for Job Corps centers can vary significantly based on location, program offerings, and student demographics. A detailed comparison would require accessing official Job Corps performance data and cost reports to benchmark this specific center's efficiency and resource allocation against its peers.

What are the key performance indicators (KPIs) used to measure the success of the Gerald R. Ford Job Corps Center under this contract?

The success of the Gerald R. Ford Job Corps Center under this contract is likely measured by a set of Key Performance Indicators (KPIs) defined by the Department of Labor. These typically include metrics such as student retention rates, completion rates for academic and vocational programs, job placement rates for graduates, average wages of placed graduates, and employer satisfaction with the skills of the workforce provided. Additionally, KPIs might encompass student satisfaction surveys, adherence to safety standards, and efficient use of resources. The contract documents themselves would specify these KPIs and the targets the contractor must meet to be considered successful.

What is the historical spending trend for the operation of the Gerald R. Ford Job Corps Center over the past decade?

Analyzing the historical spending trend for the Gerald R. Ford Job Corps Center over the past decade would provide context for the current $40.7 million contract. This would involve examining previous contract awards for the center's operation, noting any significant increases or decreases in funding, and identifying the contractors involved. Understanding these trends can reveal patterns in operational costs, potential shifts in program scope, or the impact of federal budget cycles on the center's funding. Without access to historical contract data specifically for this center, it's challenging to provide a precise trend analysis, but such information would be vital for assessing the long-term financial commitment and stability of the facility.

What are the potential risks associated with a sole-source or limited competition award for a large federal contract like this?

While this contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', which is a form of limited competition, potential risks associated with such awards generally include reduced price competition, potentially leading to higher costs for the government. There's also a risk that innovative solutions or more cost-effective approaches from excluded vendors might not be considered. Furthermore, limited competition can sometimes raise concerns about fairness and equal opportunity for all potential bidders. For this specific contract, the exclusion of sources implies that the government had specific reasons, possibly related to specialized capabilities or past performance, which might mitigate some of these risks by ensuring a highly qualified, albeit smaller, pool of competitors.

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: 1630J4-18-R-00001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1900 BOULDERCREST RD SE, ATLANTA, GA, 30316

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $45,885,362

Exercised Options: $45,424,514

Current Obligation: $40,762,465

Actual Outlays: $34,682,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline