Department of Labor awards $77.5M for Job Corps center operations to Career Systems Development Corporation

Contract Overview

Contract Amount: $77,502,400 ($77.5M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2019-10-01

End Date: 2025-01-31

Contract Duration: 1,949 days

Daily Burn Rate: $39.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES CENTER OPERATIONS, OUTREACH/ADMISSIONS, AND CAREER TRANSITION SERVICES AT THE SACRAMENTO JOB CORPS CENTER.

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95832

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $77.5 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES CENTER OPERATIONS, OUTREACH/ADMISSIONS, AND CAREER TRANSITION SERVICES AT THE SACRAMENTO JOB CORPS CENTER. Key points: 1. The contract focuses on vocational training for youth aged 16-24. 2. Career Systems Development Corporation is the awardee for Sacramento Job Corps Center. 3. The contract spans nearly 5 years, from October 2019 to January 2025. 4. Services include center operations, outreach, admissions, and career transition. 5. This is a Firm Fixed Price contract.

Value Assessment

Rating: good

The contract value of $77.5M over approximately 5 years suggests a significant investment in vocational training. Benchmarking against similar large-scale training program contracts would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices and good value for the government.

Taxpayer Impact: Taxpayer funds are being used to provide essential job training services to young adults, aiming to improve their employability and future economic prospects.

Public Impact

Provides critical vocational training and career services to young adults. Aims to reduce unemployment and increase earning potential for participants. Supports the development of a skilled workforce for various industries. The program's success can be measured by participant placement rates and long-term career outcomes. Operates in California, serving the Sacramento region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (1949 days).
No small business participation noted.

Positive Signals

Full and open competition utilized.
Firm Fixed Price contract type.

Sector Analysis

The 'Other Technical and Trade Schools' sector (NAICS 611519) encompasses vocational training programs. Spending in this sector is crucial for workforce development. The contract value is substantial for a single center operation.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). While the primary contractor is likely a larger entity, opportunities for subcontracting to small businesses were not explicitly detailed.

Oversight & Accountability

The Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management, is responsible for overseeing this contract. Standard government oversight mechanisms for contract performance and financial management would apply.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Long contract duration.
No explicit small business participation.
Potential for cost overruns if performance metrics are not met.
Reliance on contractor's ability to adapt to changing labor market demands.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $77.5 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS CONTRACT PROVIDES CENTER OPERATIONS, OUTREACH/ADMISSIONS, AND CAREER TRANSITION SERVICES AT THE SACRAMENTO JOB CORPS CENTER.

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $77.5 million.

What is the period of performance?

Start: 2019-10-01. End: 2025-01-31.

What is the expected impact of this contract on youth unemployment rates in the Sacramento area?

This contract aims to reduce youth unemployment by providing vocational training and career transition services. The success will be measured by the number of participants who gain employment and achieve career stability post-program. A significant impact would be seen if placement rates increase and participants secure jobs aligned with their training.

What are the key performance indicators (KPIs) used to measure the effectiveness of the Job Corps center operations under this contract?

Key performance indicators likely include participant enrollment and retention rates, completion rates for training programs, job placement rates upon graduation, and post-placement wage levels. The Department of Labor would establish specific targets for these KPIs to ensure the program's effectiveness and accountability.

How does the cost per participant compare to similar vocational training programs, and does the firm fixed price structure adequately incentivize performance?

Benchmarking the cost per participant against similar government-funded or private vocational programs is essential for a comprehensive value assessment. The firm fixed price structure provides cost certainty but relies on robust performance metrics and potential award/incentive fees to drive desired outcomes and ensure value for taxpayer money.

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: 1630J6-18-R-00001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $111,377,216

Exercised Options: $111,168,311

Current Obligation: $77,502,400

Actual Outlays: $73,510,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline