Job Corps contract awarded to Career Systems Development Corporation for $160M over 11 years for vocational training

Contract Overview

Contract Amount: $16,021,773 ($16.0M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2003-03-21

End Date: 2014-07-25

Contract Duration: 4,144 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24.

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95832

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $16.0 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. Key points: 1. The contract spans over a decade, indicating a long-term need for vocational training services. 2. Career Systems Development Corporation is the sole awardee, raising questions about competition. 3. The 'Other Technical and Trade Schools' NAICS code suggests a broad scope of training. 4. The significant award amount highlights the substantial investment in youth workforce development.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries risk if not managed properly. The total award of $160M over 11 years suggests an average annual value of approximately $14.5M.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bids were considered. However, the long duration and specific nature of the services might limit the pool of qualified bidders.

Taxpayer Impact: Taxpayer funds are being invested in youth workforce development, aiming for long-term economic benefits through improved employability.

Public Impact

Provides vocational training to young adults, potentially improving their career prospects and earning potential. Addresses a critical need for skilled labor in various sectors by equipping youth with job-ready skills. The program's success is tied to its ability to adapt to evolving labor market demands and provide relevant training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to complacency or reduced incentive for innovation.
CPIF contract type requires careful monitoring to ensure cost efficiency.
Effectiveness of training needs to be continuously evaluated against labor market needs.

Positive Signals

Addresses a vital social need for youth employment and skill development.
Full and open competition suggests a potentially competitive bidding process.
Long-term commitment allows for program stability and sustained impact.

Sector Analysis

The 'Other Technical and Trade Schools' sector (NAICS 611519) encompasses a wide range of vocational training. Spending in this area is driven by the need for a skilled workforce and federal initiatives to support youth employment.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight is crucial to ensure the quality and effectiveness of the vocational training provided and the efficient use of taxpayer funds.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Long contract duration (11 years) may reduce contractor's incentive for innovation.
CPIF contract type requires diligent oversight to manage costs and ensure value.
Potential for scope creep or misalignment with rapidly changing labor market needs.
Sole awardee status, despite 'full and open' designation, warrants scrutiny of competition effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $16.0 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24.

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 (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $16.0 million.

What is the period of performance?

Start: 2003-03-21. End: 2014-07-25.

What is the cost-effectiveness of the Job Corps program in terms of long-term employment and earnings for participants compared to alternative training programs?

Assessing the cost-effectiveness requires analyzing long-term data on participant employment rates, wage progression, and recidivism rates. Comparing these outcomes against the program's costs and against similar federal or state-funded training initiatives is essential. A positive return on investment, demonstrated through increased tax contributions and reduced social service reliance by participants, would indicate strong cost-effectiveness.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for vocational training, and how are they mitigated?

Key risks include potential cost overruns if performance targets are not well-defined or achievable, and the contractor may focus on maximizing profit rather than program quality. Mitigation strategies involve clear, measurable performance metrics tied to participant outcomes, rigorous monitoring of costs and progress by the agency, and establishing realistic incentive fee structures that reward both cost control and high-quality service delivery.

How effectively does the Job Corps program adapt its training curricula to meet the evolving demands of the current labor market?

Effectiveness hinges on the program's agility in updating training modules to align with industry needs and technological advancements. Regular consultation with industry partners, labor market analysis, and feedback mechanisms from employers are crucial. The agency's oversight should include performance metrics that track the relevance of skills taught and the placement rates of graduates into jobs that utilize their training.

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

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

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

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

Financial Breakdown

Contract Ceiling: $34,672,629

Exercised Options: $34,672,629

Current Obligation: $16,021,773

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline