Labor Department's $24.2M contract for career transition services awarded to Dynamic Educational Systems Inc

Contract Overview

Contract Amount: $24,197,474 ($24.2M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2003-06-25

End Date: 2008-03-31

Contract Duration: 1,741 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROVIDE OUTREACH, ADMISSIONS, AND CAREER TRANSITION SERVICES FOR THE STATES OF IDAHO, OREGON, AND WASHINGTON

Place of Performance

Location: WASHINGTON

State: Washington Government Spending

Plain-Language Summary

Department of Labor obligated $24.2 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: PROVIDE OUTREACH, ADMISSIONS, AND CAREER TRANSITION SERVICES FOR THE STATES OF IDAHO, OREGON, AND WASHINGTON Key points: 1. Contract value of $24.2 million over approximately 4.8 years indicates a significant investment in workforce development. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract type, Cost Plus Fixed Fee, may present cost control challenges if not closely monitored. 4. Performance period of over 4 years allows for sustained service delivery. 5. The geographic scope covers Idaho, Oregon, and Washington, indicating a broad regional impact. 6. The North American Industry Classification System (NAICS) code 561990 suggests a focus on general support services.

Value Assessment

Rating: fair

The contract's total value of $24.2 million over nearly five years averages to approximately $4.8 million annually. Benchmarking this against similar large-scale workforce development contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if cost overruns are not effectively managed by the government. The fixed fee component provides some cost certainty for the contractor's profit, but the cost reimbursement aspect requires diligent oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this service requirement. While multiple bidders participated, the specific details of the bidding process and the evaluation criteria are not provided, making it difficult to definitively assess the intensity of the competition and its impact on price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, potentially leading to a more cost-effective outcome for this significant investment in workforce services.

Public Impact

Benefits individuals in Idaho, Oregon, and Washington seeking outreach, admissions, and career transition services. Aims to support workforce development and re-employment efforts within the specified states. The services provided are crucial for individuals navigating career changes or seeking new employment opportunities. Potential positive impact on the regional economies of Idaho, Oregon, and Washington through improved workforce participation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires robust government oversight to manage costs effectively.
Limited information on specific performance metrics makes it difficult to assess the effectiveness of services delivered.
The broad geographic scope may present logistical challenges in ensuring consistent service quality across all three states.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
A multi-year contract allows for sustained support and relationship building with beneficiaries.
The contract addresses a critical need for career transition services, supporting individual and economic well-being.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on support services. The market for workforce development and career transition services is diverse, encompassing government agencies, non-profits, and private sector providers. Comparable spending benchmarks would depend on the scale and specific nature of the services offered, but government investments in employment and training programs are substantial nationwide.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on larger, potentially more established service providers. There is no explicit information on subcontracting requirements for small businesses, which could limit opportunities for smaller entities to participate in delivering these services. The impact on the small business ecosystem is likely minimal unless Dynamic Educational Systems Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned. Accountability measures would be tied to performance standards and deliverables outlined in the contract. Transparency is generally facilitated through contract award databases, but detailed performance reports and audits are typically internal or subject to specific disclosure rules.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Trade Adjustment Assistance (TAA) Program
Veteran Employment Services
Dislocated Worker Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to control costs.
Geographic scope may present challenges in uniform service delivery.
Limited public data on contractor performance and specific service outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.2 million to DYNAMIC EDUCATIONAL SYSTEMS INC. PROVIDE OUTREACH, ADMISSIONS, AND CAREER TRANSITION SERVICES FOR THE STATES OF IDAHO, OREGON, AND WASHINGTON

Who is the contractor on this award?

The obligated recipient is DYNAMIC EDUCATIONAL SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $24.2 million.

What is the period of performance?

Start: 2003-06-25. End: 2008-03-31.

What specific outreach, admissions, and career transition services are being provided under this contract, and what are the key performance indicators (KPIs) for success?

The provided data does not detail the specific services or KPIs. However, typical outreach services might include community engagement and information dissemination. Admissions services would likely involve intake, assessment, and eligibility determination. Career transition services commonly encompass career counseling, skills assessment, training referrals, job search assistance, resume building, and interview preparation. Success would likely be measured by metrics such as the number of individuals served, successful completion of training programs, placement rates into new employment, wage levels achieved in new jobs, and retention rates in new employment. Without the full contract statement of work, these remain assumptions.

How does the $24.2 million contract value compare to historical spending on similar services by the Department of Labor in the specified states?

Direct comparison of the $24.2 million contract value to historical spending is difficult without access to detailed historical procurement data for the Department of Labor's Employment and Training Administration in Idaho, Oregon, and Washington. However, the duration of nearly five years suggests a substantial, ongoing program. The value indicates a significant commitment to workforce development in the region. To provide a precise comparison, one would need to analyze past contracts for similar services (outreach, admissions, career transition) awarded by the ETA to other entities or directly by the government in those states over comparable periods.

What is the track record of Dynamic Educational Systems Inc. in delivering government contracts, particularly those related to workforce development?

Information on the track record of Dynamic Educational Systems Inc. (DESI) is not detailed in the provided data. A comprehensive assessment would require reviewing DESI's past performance on federal, state, and local government contracts. Key areas to investigate would include their success in managing similar service delivery programs, client satisfaction, adherence to contract terms, financial stability, and any history of performance issues or disputes. Without this external data, it's impossible to evaluate their specific capabilities and reliability for this contract.

Given the Cost Plus Fixed Fee (CPFF) contract type, what are the potential risks and how are they mitigated by the Department of Labor?

The primary risk with a CPFF contract is that costs could escalate beyond initial projections, as the government reimburses the contractor for allowable costs. The 'fixed fee' provides the contractor a predetermined profit margin. Mitigation strategies employed by the Department of Labor would typically include stringent cost accounting standards, regular audits of contractor expenditures, clear definitions of allowable and unallowable costs, and robust oversight by contracting officers and program managers. Performance metrics and deliverables are also crucial to ensure that the services provided justify the costs incurred. Effective negotiation of the fee and continuous monitoring are key to managing this risk.

What is the expected impact of these services on the employment rates and wage levels for participants in Idaho, Oregon, and Washington?

The expected impact is positive, aiming to increase employment rates and potentially improve wage levels for participants. By providing career transition services, the program intends to equip individuals with the skills and support needed to secure new employment, possibly in higher-demand or higher-paying fields. The effectiveness in achieving these outcomes depends heavily on the quality of services, the local job market conditions in each state, and the individual motivation and circumstances of the participants. The contract's success would ideally be measured by a demonstrable improvement in employment outcomes compared to a control group or baseline data.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Exodyne Inc. (UEI: 073512048)

Address: 8433 N BLACK CANYON HWY #, PHOENIX, AZ, 85021

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,624,048

Exercised Options: $28,348,572

Current Obligation: $24,197,474

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline