ARBOR E & T LLC awarded $55.6M for Job Corps Center operations, with 7 bidders indicating strong competition

Contract Overview

Contract Amount: $55,617,310 ($55.6M)

Contractor: Arbor E & T LLC

Awarding Agency: Department of Labor

Start Date: 2018-11-01

End Date: 2024-01-31

Contract Duration: 1,917 days

Daily Burn Rate: $29.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF MILWAUKEE JOB CORP CENTER

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53223

State: Wisconsin Government Spending

Plain-Language Summary

Department of Labor obligated $55.6 million to ARBOR E & T LLC for work described as: IGF::CT::IGF MILWAUKEE JOB CORP CENTER Key points: 1. Value for money appears reasonable given the long-term nature of the contract and the scope of services. 2. Strong competition with 7 bidders suggests a healthy market for these services. 3. Risk indicators are moderate, typical for large service contracts with defined performance metrics. 4. Performance context is crucial for evaluating the effectiveness of the Job Corps program. 5. Sector positioning is within the education and workforce development services for federal programs.

Value Assessment

Rating: good

The contract value of $55.6 million over approximately 5 years represents a significant investment in workforce development. Benchmarking against similar Job Corps center contracts would provide a clearer picture of value for money. The firm-fixed-price structure suggests that the contractor bears most of the cost risk, which can be favorable for the government if performance is met. However, without detailed performance data, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with seven bidders participating. This level of competition is a positive sign, suggesting that multiple capable contractors vied for the opportunity. A robust bidding process generally leads to more competitive pricing and a wider selection of qualified providers, benefiting the government.

Taxpayer Impact: The strong competition indicates that taxpayer dollars were likely used efficiently, as multiple companies competed to offer the best value, potentially driving down costs compared to a less competitive scenario.

Public Impact

The primary beneficiaries are students enrolled in the Job Corps program, receiving vocational training and support services. Services delivered include career training, education, job placement assistance, and residential support. Geographic impact is focused on Milwaukee, Wisconsin, serving the local and regional workforce needs. Workforce implications include the creation and maintenance of jobs for instructors, administrators, and support staff at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly due to the long duration.
Ensuring consistent quality of training across all programs is a continuous challenge.
Measuring long-term job placement success and career progression requires robust tracking.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Strong competition suggests a capable and motivated contractor pool.
Long-term contract allows for stable program operations and planning.

Sector Analysis

This contract falls within the broader federal spending on education and workforce development services. The Job Corps program is a significant initiative aimed at providing vocational training and education to at-risk youth. Spending in this sector is influenced by economic conditions, labor market demands, and federal budget priorities. Comparable benchmarks would involve analyzing spending on other Job Corps centers and similar workforce training programs.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, the direct impact on small businesses through this specific award is likely minimal unless Arbor E & T LLC engages them as subcontractors. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight is likely managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management, which oversees administrative functions. Performance metrics and reporting requirements within the contract would serve as key accountability measures. Transparency is generally maintained through contract award databases, though specific operational details may be internal.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act Programs
Federal Job Training Programs
Youth Development Programs
Vocational Education Grants

Risk Flags

Long contract duration may increase risk of scope creep or performance degradation if not actively managed.
Dependence on government funding levels for program sustainability.
Measuring long-term success (job retention) can be challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $55.6 million to ARBOR E & T LLC. IGF::CT::IGF MILWAUKEE JOB CORP CENTER

Who is the contractor on this award?

The obligated recipient is ARBOR E & T 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 $55.6 million.

What is the period of performance?

Start: 2018-11-01. End: 2024-01-31.

What is the historical spending trend for this specific Job Corps center contract?

Historical spending data for this specific IGF MILWAUKEE JOB CORP CENTER contract awarded to ARBOR E & T LLC shows a consistent expenditure pattern aligned with the contract's duration and scope. The total award value of $55,617,309.79 spans from November 1, 2018, to January 31, 2024, a period of approximately 63 months. This averages to roughly $882,814 per month or $10.6 million annually. While this specific award represents the total obligated amount, prior contracts for the same center, potentially awarded to different entities, would need to be examined to establish a comprehensive historical spending trend. Fluctuations in annual spending could be influenced by program adjustments, student enrollment levels, and specific service delivery requirements mandated by the Department of Labor.

How does the per-student cost compare to other Job Corps centers nationally?

Determining the precise per-student cost requires knowing the average daily or annual student enrollment for this specific Milwaukee Job Corps center during the contract period. Without that enrollment data, a direct comparison is not feasible. However, national averages for Job Corps centers can vary significantly based on location, the types of training offered, and the cost of living in the area. Generally, per-student costs can range from $15,000 to over $30,000 annually. To perform an accurate benchmark, one would need to obtain the average daily census (ADC) or annual student throughput for the IGF MILWAUKEE JOB CORP CENTER and divide the total contract cost (or annual portion thereof) by that number. This would then allow for comparison against publicly available data or reports from the Department of Labor on other centers.

What are the key performance indicators (KPIs) for this contract, and how has Arbor E & T LLC performed against them?

Key performance indicators (KPIs) for Job Corps center contracts typically revolve around student outcomes, such as completion rates, graduation rates, attainment of industry-recognized credentials, and successful job placement rates within a specified timeframe post-completion. Other KPIs may include student satisfaction, safety and security metrics, and adherence to program standards. The Department of Labor, through its contract oversight, would monitor these KPIs. While the contract award data does not provide specific performance ratings, a thorough analysis would involve reviewing performance reports, quality assurance surveillance plans (QASPs), and any documented deficiencies or commendations related to Arbor E & T LLC's management of the Milwaukee Job Corps Center. Accessing these detailed performance records would be necessary for a complete assessment.

What is the track record of Arbor E & T LLC in managing federal contracts, particularly in the education or workforce development sector?

Arbor E & T LLC has a history of managing federal contracts, primarily within the workforce development and education sectors. Their involvement with Job Corps centers is a significant part of their portfolio. A comprehensive review of their contract history would reveal the number of contracts awarded, their values, durations, and performance outcomes. Examining past performance evaluations, any contract disputes, or awards would provide insight into their reliability and effectiveness. For this specific contract, the duration (over 5 years) and the firm-fixed-price nature suggest a level of confidence from the awarding agency. However, a deeper dive into their performance on other similar contracts would offer a more robust understanding of their overall track record.

Are there any specific risks associated with the firm-fixed-price contract type for this service?

The firm-fixed-price (FFP) contract type generally shifts the cost risk to the contractor, Arbor E & T LLC. This means the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. For the government, this offers budget certainty. However, risks can arise if the scope of work is not clearly defined or if unforeseen circumstances significantly increase the contractor's costs. In such cases, the contractor might be incentivized to cut corners on quality or service delivery to maintain profitability, potentially impacting student outcomes. Conversely, if the contractor manages costs efficiently, the FFP structure can lead to savings for the government. Effective government oversight is crucial to ensure quality is maintained despite the cost-containment incentive.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1630J4-18-R-00002

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 805 N WHITTINGTON PKWY, LOUISVILLE, KY, 40222

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

Financial Breakdown

Contract Ceiling: $60,001,485

Exercised Options: $58,788,465

Current Obligation: $55,617,310

Actual Outlays: $49,378,827

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline