Department of Labor awards $103.6M contract for Job Corps Center management, with 4 bidders competing

Contract Overview

Contract Amount: $103,655,383 ($103.7M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2019-08-01

End Date: 2024-11-30

Contract Duration: 1,948 days

Daily Burn Rate: $53.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ATTERBURY JOB CORPS CENTER

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46204

State: Indiana Government Spending

Plain-Language Summary

Department of Labor obligated $103.7 million to MANAGEMENT & TRAINING CORPORATION for work described as: ATTERBURY JOB CORPS CENTER Key points: 1. Contract value represents significant investment in vocational training and workforce development. 2. Competition dynamics suggest a potentially competitive market for similar services. 3. Contract duration of nearly 2 years indicates a need for sustained operational support. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic focus on Indiana highlights regional workforce development needs. 6. The award to Management & Training Corporation suggests a strong track record in managing such facilities.

Value Assessment

Rating: good

The contract value of $103.6 million over its period of performance appears substantial for managing a Job Corps center. Benchmarking against similar large-scale vocational training and facility management contracts would be necessary for a precise value-for-money assessment. However, the firm fixed-price structure suggests an effort to manage costs effectively. The number of bidders (4) indicates a degree of market interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four distinct bidders participating. This level of competition is generally positive, suggesting that multiple capable entities vied for the opportunity. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions being considered by the government.

Taxpayer Impact: The full and open competition indicates that taxpayers likely benefited from a more efficient price discovery process, potentially leading to cost savings compared to a sole-source or limited competition award.

Public Impact

Benefits disadvantaged youth and young adults by providing vocational training and educational services. Delivers comprehensive services including career counseling, job placement assistance, and life skills training. Primarily impacts the workforce development landscape in Indiana. Creates and sustains employment opportunities for instructors, administrators, and support staff at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting student outcomes.
Risk of cost overruns if not managed tightly under fixed-price terms.
Dependence on a single contractor for critical workforce development services.

Positive Signals

Successful management of a large-scale training facility.
Demonstrated ability to meet performance standards and deliver training.
Positive impact on participant employment rates and career progression.

Sector Analysis

The contract falls within the broader education and workforce development sector, specifically focusing on vocational training. The market for managing large educational facilities and providing comprehensive training programs is competitive, with several established players. This award represents a significant portion of federal spending dedicated to the Job Corps program, which aims to equip young people with skills for in-demand occupations.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The primary awardee is a large corporation. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management, ensuring compliance with contract terms and performance standards. Accountability measures would be tied to the achievement of program goals, student success metrics, and financial reporting. Transparency is generally maintained through contract award databases and performance reports.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Vocational Rehabilitation Services
Federal Job Training Programs

Risk Flags

Contract duration may be subject to renewal and continued funding.
Performance quality is critical for achieving program goals.
Potential for contractor performance issues impacting student outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $103.7 million to MANAGEMENT & TRAINING CORPORATION. ATTERBURY JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $103.7 million.

What is the period of performance?

Start: 2019-08-01. End: 2024-11-30.

What is the historical spending pattern for the Atterbury Job Corps Center contract?

Historical spending data for the Atterbury Job Corps Center contract indicates a consistent investment in its operation. Prior to this $103.6 million award, previous contracts would have funded its management and services. Analyzing the duration and value of previous contracts awarded to Management & Training Corporation or other entities for this specific center would reveal trends in cost, scope, and contractor stability. For instance, if previous contracts were significantly smaller or shorter, it might suggest an expansion of services or a shift in operational scale. Conversely, consistent large awards would point to a stable, long-term operational requirement and a proven contractor relationship.

How does the per-student cost of this contract compare to other Job Corps centers?

To compare the per-student cost, we would need the total number of students served annually by the Atterbury Job Corps Center under this contract, as well as the total contract value allocated for a specific year. Dividing the annual contract cost by the number of students would yield the per-student cost. This figure could then be benchmarked against the average per-student cost across other Job Corps centers nationwide, or against centers of similar size and scope. Significant deviations from the average could indicate differences in operational efficiency, service intensity, or regional cost variations. For example, a substantially higher per-student cost might warrant an investigation into the specific services provided or the efficiency of the management.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

Key performance indicators (KPIs) for a Job Corps center management contract typically revolve around student outcomes and operational efficiency. These often include metrics such as student graduation rates, job placement rates post-graduation, average starting wages of placed graduates, and student retention rates. Operational KPIs might include facility maintenance standards, safety compliance, and adherence to budget. Performance is usually measured through regular reporting by the contractor, site visits and audits by the contracting agency (Department of Labor), and potentially third-party evaluations. Contractual terms would specify the exact KPIs, targets, and the methodology for assessing performance, with potential incentives or penalties tied to achieving these metrics.

What is Management & Training Corporation's track record with federal contracts, particularly in managing Job Corps centers?

Management & Training Corporation (MTC) has a significant track record in managing federal contracts, particularly for correctional facilities and Job Corps centers. They are one of the largest private operators of correctional facilities and have extensive experience with the Job Corps program across various locations. A review of their contract history would likely show numerous awards from agencies like the Department of Labor and the Federal Bureau of Prisons. Performance evaluations and past performance questionnaires associated with these prior contracts would provide insights into their reliability, ability to meet performance standards, and overall client satisfaction. Examining any past disputes, contract terminations, or significant performance issues would also be crucial for a comprehensive assessment.

What are the potential risks associated with the firm fixed-price contract type for this service?

While firm fixed-price (FFP) contracts are designed to provide cost certainty for the government, they can introduce risks for the contractor, which may indirectly affect the government. For a complex service like managing a Job Corps center, unforeseen challenges in student needs, facility maintenance, or regulatory changes could increase the contractor's costs beyond what was anticipated. If the contractor struggles to absorb these increased costs, it could lead to a decline in service quality, reduced investment in program enhancements, or even contractor default. The government's risk lies in potentially receiving subpar services if the contractor prioritizes cost-cutting over quality to maintain profitability under the fixed price.

How does the geographic focus on Indiana influence the contract's objectives and expected outcomes?

The geographic focus on Indiana means the contract's objectives are tailored to the specific workforce needs and economic conditions of that state. The Job Corps center will likely prioritize training for occupations in high demand within Indiana's industries, such as advanced manufacturing, healthcare, or logistics. Expected outcomes would include equipping Indiana residents, particularly young adults from disadvantaged backgrounds, with the skills to secure local employment, thereby contributing to the state's economic development and reducing unemployment. The program's success will be measured not only by national Job Corps metrics but also by its impact on the Indiana labor market and the success of its graduates in finding and retaining employment within the state.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630J5-17-R-00003

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PL DR STE 100, CENTERVILLE, UT, 84014

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: $115,345,489

Exercised Options: $113,818,644

Current Obligation: $103,655,383

Actual Outlays: $100,787,310

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $257,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline