DOL's $24M Vocational Services Contract with Career Systems Development Corporation Faces Scrutiny

Contract Overview

Contract Amount: $24,089,725 ($24.1M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2003-10-01

End Date: 2008-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: VOCATIONAL AND ACADEMIC SERVICES FOR YOUTH

Place of Performance

Location: IMPERIAL BEACH, SAN DIEGO County, CALIFORNIA, 91932

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $24.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: VOCATIONAL AND ACADEMIC SERVICES FOR YOUTH Key points: 1. Contract awarded to Career Systems Development Corporation for vocational and academic services. 2. Significant duration of 1826 days (5 years) raises questions about long-term necessity. 3. Lack of small business participation noted, despite potential for such services. 4. The contract's cost-plus-incentive-fee structure requires careful monitoring for efficiency.

Value Assessment

Rating: questionable

The contract's total value of $24,089,725 over five years suggests a substantial investment. Without specific per-unit cost data or benchmarks for similar vocational training programs, assessing its value for money is difficult. The cost-plus-incentive-fee (CPIF) structure implies potential for cost overruns if not managed tightly.

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. However, the long duration and the specific nature of the services might have limited the pool of qualified bidders. The CPIF pricing structure can incentivize cost increases, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for vocational and academic services. The effectiveness and efficiency of these services in achieving their intended outcomes for youth are critical to ensuring a positive return on investment.

Public Impact

Youth development programs are crucial for workforce readiness and reducing recidivism. The long-term nature of the contract suggests a sustained need for these services. Transparency in performance metrics and outcomes is essential for public trust. Potential for cost overruns under CPIF contracts necessitates robust oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years)
Cost-plus-incentive-fee structure
No small business participation
Lack of detailed performance metrics in provided data

Positive Signals

Awarded under full and open competition
Addresses critical youth development needs

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically focusing on vocational and academic services for youth. Benchmarking spending in this niche area is challenging without more specific service details, but government spending on youth workforce development programs is significant.

Small Business Impact

The data indicates that small businesses were not involved in this contract, either as prime contractors or potentially as subcontractors. Given the nature of vocational services, there may be opportunities for small businesses to provide specialized training or support, warranting further investigation.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight is crucial, especially with a CPIF contract, to ensure cost control, performance standards are met, and taxpayer funds are used efficiently.

Related Government Programs

Facilities Support Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Long contract duration (5 years)
Cost-plus-incentive-fee (CPIF) pricing structure
No reported small business participation
Potential for cost overruns
Lack of specific performance outcome data

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. VOCATIONAL AND ACADEMIC SERVICES FOR YOUTH

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 $24.1 million.

What is the period of performance?

Start: 2003-10-01. End: 2008-09-30.

What specific vocational and academic outcomes were achieved by Career Systems Development Corporation under this contract, and how do they compare to the program's goals and cost?

Assessing the value requires examining the program's effectiveness in improving participants' job placement rates, earning potential, and overall well-being. Comparing these outcomes against the $24 million investment and the CPIF structure's potential for increased costs is crucial for determining if the spending yielded sufficient societal benefits and met the intended objectives for youth development.

What risks were associated with the long-term, cost-plus-incentive-fee nature of this contract, and how were they mitigated by the Department of Labor?

The primary risks include potential cost overruns due to the CPIF structure and the possibility of vendor complacency over a five-year period. Mitigation strategies should have involved stringent performance monitoring, clear incentive targets tied to measurable outcomes, and regular reviews to ensure the contractor remained efficient and effective in delivering services and achieving program goals.

How effective was the full and open competition process in securing competitive pricing and ensuring the best value for these specialized youth services?

While full and open competition is generally preferred, its effectiveness in achieving best value depends on the specificity of the requirements and the number of qualified bidders. For specialized services, the pool might be limited. The CPIF structure itself can complicate price discovery, making it essential to scrutinize the final negotiated price against performance and market rates.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DR 100, WEST HENRIETTA

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

Financial Breakdown

Contract Ceiling: $81,237,019

Exercised Options: $31,362,554

Current Obligation: $24,089,725

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline