Department of Labor's Job Corps contract awarded to Chugach Training and Educational Solutions, LLC for $46.7M

Contract Overview

Contract Amount: $46,763,725 ($46.8M)

Contractor: Chugach Training and Educational Solutions, LLC

Awarding Agency: Department of Labor

Start Date: 2019-01-01

End Date: 2023-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JOB CORPS IS A NATIONAL EMPLOYMENT PROGRAM ADMINISTERED BY THE U.S. DEPARTMENT OF LABOR TO ASSIST DISADVANTAGED YOUTH BETWEEN THE AGES OF 16 AND 24.

Place of Performance

Location: PALMER, MATANUSKA SUSITNA County, ALASKA, 99645

State: Alaska Government Spending

Plain-Language Summary

Department of Labor obligated $46.8 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC for work described as: JOB CORPS IS A NATIONAL EMPLOYMENT PROGRAM ADMINISTERED BY THE U.S. DEPARTMENT OF LABOR TO ASSIST DISADVANTAGED YOUTH BETWEEN THE AGES OF 16 AND 24. Key points: 1. The contract supports a national employment program for disadvantaged youth, indicating a focus on social impact. 2. Awarded via full and open competition after exclusion of sources, suggesting a deliberate selection process. 3. The contract duration of 1825 days (5 years) points to a long-term commitment to service delivery. 4. The firm fixed-price contract type aims to control costs and provide budget certainty. 5. The North American Industry Classification System (NAICS) code 611519 suggests a focus on specialized technical and trade schools. 6. The contract's value of $46.7 million over five years represents a significant investment in youth development.

Value Assessment

Rating: good

The contract value of $46.7 million over five years for the Job Corps program appears reasonable given the scope of services for disadvantaged youth. Benchmarking against similar large-scale national training programs would provide further context, but the firm fixed-price structure suggests an effort to manage costs effectively. The award to a single entity, Chugach Training and Educational Solutions, LLC, implies a comprehensive service delivery model.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition after exclusion of sources.' This indicates that while the competition was open, specific sources may have been excluded based on predefined criteria, possibly related to specialized capabilities or past performance. The number of bidders is not specified, but the process suggests a structured approach to selecting a qualified contractor for a complex national program.

Taxpayer Impact: This competitive process aims to ensure that taxpayer funds are used efficiently by selecting the most capable and cost-effective provider for essential youth training services.

Public Impact

Disadvantaged youth aged 16-24 across the nation benefit from employment and training services. The program delivers vocational training, education, and job placement assistance. The geographic impact is national, aiming to serve youth in various regions. Workforce implications include equipping young individuals with skills for in-demand occupations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to long-term contract duration.
Ensuring consistent quality of training across all program sites.
Measuring long-term employment success rates of program participants.

Positive Signals

Focus on a critical social program for disadvantaged youth.
Firm fixed-price contract provides cost predictability.
Long-term contract allows for program stability and development.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, a segment of the education and training industry focused on providing specialized vocational skills. The market for such services is driven by workforce development needs and government initiatives to improve employment outcomes for specific demographics. The $46.7 million value positions this as a significant contract within its niche, likely involving extensive operational and training infrastructure.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this contract. This suggests the focus was on securing a large-scale provider capable of managing the national scope of the Job Corps program. Subcontracting opportunities for small businesses may exist within the prime contractor's operations, but they are not explicitly detailed in this award information.

Oversight & Accountability

Oversight for this contract is managed by the Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management. Accountability measures would typically involve performance metrics, reporting requirements, and site visits to ensure the program's effectiveness and compliance. Transparency is facilitated through contract award data, though detailed operational oversight mechanisms are not specified here.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
YouthBuild Program
Adult Education and Family Literacy Act programs
Federal Job Training Programs

Risk Flags

Long-term contract duration may reduce flexibility.
Potential for cost overruns if market conditions change significantly.
Ensuring consistent service quality across all locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $46.8 million to CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, LLC. JOB CORPS IS A NATIONAL EMPLOYMENT PROGRAM ADMINISTERED BY THE U.S. DEPARTMENT OF LABOR TO ASSIST DISADVANTAGED YOUTH BETWEEN THE AGES OF 16 AND 24.

Who is the contractor on this award?

The obligated recipient is CHUGACH TRAINING AND EDUCATIONAL SOLUTIONS, 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 $46.8 million.

What is the period of performance?

Start: 2019-01-01. End: 2023-12-31.

What is the historical spending trend for the Job Corps program administered by the Department of Labor?

Historical spending data for the Job Corps program administered by the Department of Labor reveals a consistent and significant federal investment over the years. While specific figures fluctuate annually based on appropriations and program adjustments, the program has generally received hundreds of millions of dollars each fiscal year. For instance, in recent years, annual obligations have ranged from approximately $1.5 billion to over $1.7 billion. This sustained funding underscores the program's long-standing importance in federal workforce development strategies. The contract in question, valued at $46.7 million over five years, represents a portion of this larger annual budget, likely covering specific operational or regional components of the Job Corps initiative rather than the entire national program's expenditure.

How does the awarded amount of $46.7 million compare to other contracts for similar youth employment and training services?

The awarded amount of $46.7 million over five years for the Job Corps program, administered by Chugach Training and Educational Solutions, LLC, is substantial for a single contract but should be viewed within the context of the program's national scale. When compared to other federal contracts for youth employment and training, this figure is significant, reflecting the comprehensive nature of the Job Corps model which includes education, vocational training, and support services. However, it represents a fraction of the total annual federal spending on workforce development, which can exceed several billion dollars across various agencies and programs. Contracts for smaller, more localized training initiatives or specific skill-development grants might range from a few hundred thousand to several million dollars. Therefore, while substantial, this contract's value is commensurate with the broad scope and national reach of the Job Corps program.

What are the key performance indicators (KPIs) used to evaluate the success of the Job Corps program under this contract?

Key performance indicators (KPIs) for the Job Corps program, and by extension this contract, typically focus on participant outcomes and program efficiency. Common metrics include job placement rates (the percentage of graduates who secure employment within a specified period after completion), average wages of placed graduates, retention rates in training, and the attainment of specific vocational certifications or educational credentials. The Department of Labor likely monitors these KPIs closely to assess the effectiveness of Chugach Training and Educational Solutions, LLC in delivering on the program's objectives. Success is often measured against established benchmarks and historical performance data to ensure continuous improvement and accountability for taxpayer investment in youth development and workforce readiness.

What is the track record of Chugach Training and Educational Solutions, LLC in managing large federal contracts, particularly in education or workforce development?

Chugach Training and Educational Solutions, LLC has a history of managing federal contracts, including those related to training and education. As a subsidiary of the Chugach Alaska Corporation, it has experience in government contracting across various sectors. Information available through federal procurement databases indicates past awards for services that align with workforce development and training. Evaluating their specific track record for large-scale, national programs like Job Corps would involve examining past performance reviews, any documented issues or successes, and their capacity to manage complex operations across multiple locations. While the award itself suggests they met the criteria for this significant contract, a deeper dive into their performance on previous, similar endeavors would provide a more complete picture of their capabilities and reliability.

What are the potential risks associated with a long-term, firm-fixed-price contract for a program like Job Corps?

A long-term, firm-fixed-price contract for the Job Corps program presents several potential risks. For the government, the primary risk is that the fixed price may become uncompetitive over the contract's five-year duration if market costs for labor, materials, or services increase significantly. This could lead to the contractor realizing unexpectedly high profit margins or, conversely, cutting corners on quality to maintain profitability. For the contractor, the risk lies in underestimating costs or facing unforeseen operational challenges, which could lead to financial losses if they cannot absorb the increased expenses within the fixed price. Additionally, long-term contracts can sometimes reduce flexibility to adapt the program to evolving workforce needs or policy changes without costly modifications. Ensuring robust performance standards and monitoring is crucial to mitigate these risks.

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: 1630J6-17-R-00001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation

Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,461,982

Exercised Options: $47,461,982

Current Obligation: $46,763,725

Actual Outlays: $39,192,376

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $1,432,965

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline