Department of Labor's $33.8M Job Corps contract awarded to Career Systems Development Corporation for operational support

Contract Overview

Contract Amount: $33,846,730 ($33.8M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2003-11-28

End Date: 2014-08-18

Contract Duration: 3,916 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF JOB CORPS CENTER

Place of Performance

Location: NEW HAVEN, NEW HAVEN County, CONNECTICUT, 06515

State: Connecticut Government Spending

Plain-Language Summary

Department of Labor obligated $33.8 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATION OF JOB CORPS CENTER Key points: 1. The contract value of $33.8 million over its duration suggests a significant investment in vocational training and workforce development. 2. Awarded through full and open competition, this contract indicates a market where multiple vendors were likely considered. 3. The use of a Cost Plus Incentive Fee (CPIF) pricing structure suggests a focus on performance and cost control, with potential for contractor bonuses tied to achieving specific objectives. 4. The contract's duration of over 10 years (from award to expiration) points to a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 611519 (Other Technical and Trade Schools) places this contract within the education and training sector. 6. The absence of small business set-aside flags suggests the primary awardee is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by the contract type.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided and the number of students served. However, a $33.8 million investment over more than a decade for operating Job Corps centers indicates a substantial commitment. The CPIF contract type implies a mechanism for incentivizing efficiency, which can be a positive indicator if well-structured. Without comparable contract data for similar Job Corps center operations, a precise value-for-money assessment is challenging, but the long duration and significant funding suggest a critical need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that the Department of Labor solicited proposals from all responsible sources. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The fact that it was competed openly suggests that multiple entities were capable of meeting the government's requirements for operating Job Corps centers.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and achieving a fair market price for the services rendered.

Public Impact

The primary beneficiaries are individuals seeking vocational training and employment services through the Job Corps program. The contract supports the delivery of operational services for Job Corps centers, which typically include training, education, and support services for disadvantaged youth. The geographic impact is likely concentrated in the region served by the specific Job Corps center(s) operated under this contract, potentially impacting the workforce development landscape in Connecticut. Workforce implications include the creation of jobs for instructors, administrators, and support staff at the Job Corps center, as well as the long-term impact of skilled graduates entering the labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the Cost Plus Incentive Fee structure if performance targets are not met or if costs escalate unexpectedly.
Long contract duration could lead to vendor complacency if performance monitoring is not rigorous.
Dependence on a single contractor for over a decade might limit flexibility in adapting to evolving training needs or technological advancements.
The specific performance metrics and incentive structure of the CPIF contract are critical for ensuring value and are not detailed here.

Positive Signals

The Cost Plus Incentive Fee (CPIF) structure incentivizes the contractor to manage costs effectively while meeting performance objectives.
Award through full and open competition suggests a robust evaluation process and selection of a capable vendor.
The long-term nature of the contract indicates a stable and sustained commitment to the Job Corps program, providing consistent services.
The contract supports a vital federal program aimed at workforce development and providing opportunities for disadvantaged youth.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and technical training. The Job Corps program is a significant federal initiative designed to provide career training and education to young people. The market for such services involves educational institutions, non-profit organizations, and private companies specializing in workforce development. The contract value of $33.8 million over its lifespan is substantial for a single center operation, reflecting the comprehensive nature of the services required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary awardee, Career Systems Development Corporation, is likely a larger entity. While there is no explicit mention of subcontracting requirements for small businesses within the provided data, large federal contracts often include provisions for small business subcontracting. The impact on the small business ecosystem would depend on whether Career Systems Development Corporation actively seeks to subcontract portions of this work to qualified small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to program-specific reporting requirements. The CPIF structure itself implies oversight through the monitoring of performance metrics and cost expenditures to determine incentive payouts. Transparency would be facilitated through contract award databases and potentially through program performance reports made public by the agency.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Vocational Rehabilitation Services
Federal Job Training Programs

Risk Flags

Long contract duration may reduce flexibility.
CPIF structure requires careful performance monitoring.
Potential for vendor complacency over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $33.8 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATION OF 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 (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $33.8 million.

What is the period of performance?

Start: 2003-11-28. End: 2014-08-18.

What specific services are included under the 'OPERATION OF JOB CORPS CENTER' for Career Systems Development Corporation?

The 'OPERATION OF JOB CORPS CENTER' designation implies a comprehensive set of services required to run a Job Corps facility. This typically includes student recruitment and outreach, academic and vocational training, career counseling and placement assistance, health and wellness services, and the overall management and maintenance of the training center. The specific curriculum, training programs offered, and the scale of operations (number of students served, capacity) would be detailed in the contract's Statement of Work (SOW). The Cost Plus Incentive Fee (CPIF) structure suggests that performance metrics related to student success rates (e.g., graduation, job placement, retention) and cost efficiency are key components of the operational requirements.

How does the Cost Plus Incentive Fee (CPIF) structure typically work in a contract of this nature?

A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and receives a fee that is adjusted based on performance. In this case, the government and the contractor would have negotiated a target cost and a target fee. If the contractor performs better than the target (e.g., lower costs, higher performance metrics), they receive a higher fee, up to a maximum. Conversely, if performance is below target, the fee is reduced, potentially down to a minimum. For the Job Corps contract, the 'incentive' would likely be tied to metrics such as student completion rates, job placement success, and potentially cost savings achieved below a target budget. This structure aims to motivate the contractor to achieve specific outcomes efficiently.

What is the historical spending trend for Job Corps center operations, and how does this $33.8M contract compare?

Historical spending on Job Corps center operations has varied significantly year over year, influenced by appropriations, program priorities, and the number of centers in operation. The total federal spending on Job Corps has historically been in the hundreds of millions of dollars annually. A single contract of $33.8 million awarded in 2003 and expiring in 2014 represents a substantial portion of the funding for operating one or more centers over that period. To provide a precise comparison, one would need to analyze annual spending for Job Corps centers during the contract's performance period (2003-2014) and identify comparable contracts for similar-sized or geographically located centers to benchmark the per-center or per-student cost.

What are the potential risks associated with a long-term contract (over 10 years) for operating a federal program like Job Corps?

Long-term contracts, such as this one spanning over a decade, present several potential risks. Firstly, there's the risk of vendor complacency; if performance monitoring is not consistently rigorous, the contractor might reduce efforts over time. Secondly, the government may face challenges in adapting to evolving needs or technological advancements, as the contract might be rigid and costly to modify. Thirdly, a prolonged relationship with a single contractor could stifle innovation if alternative approaches are not explored. Finally, there's the risk of 'lock-in,' where switching contractors becomes difficult or expensive, even if performance is suboptimal. Effective contract management, including regular performance reviews and potential for contract modifications, is crucial to mitigate these risks.

What is the significance of the NAICS code 611519 (Other Technical and Trade Schools) for this contract?

The North American Industry Classification System (NAICS) code 611519 categorizes the primary business activity of the contractor or the nature of the service being procured. For this Job Corps contract, 'Other Technical and Trade Schools' signifies that the services provided involve vocational training and education designed to equip individuals with specific skills for employment in various trades and technical fields. This classification helps in understanding the industry context, identifying comparable businesses, and analyzing spending patterns within the federal government's procurement of educational and workforce development services. It confirms that the contract's purpose aligns with the federal government's investment in skills training.

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

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 DRIVE, #100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $33,846,730

Exercised Options: $33,846,730

Current Obligation: $33,846,730

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline