Department of Labor awards $16.1M contract for Delaware Valley Job Corps Center operations to Dynamic Educational Systems Inc

Contract Overview

Contract Amount: $16,139,061 ($16.1M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2005-10-19

End Date: 2007-02-06

Contract Duration: 475 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE DELAWARE VALLEY JOB CORPS CENTER

Place of Performance

Location: CALLICOON, SULLIVAN County, NEW YORK, 12723

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $16.1 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: OPERATION OF THE DELAWARE VALLEY JOB CORPS CENTER Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives, potentially driving efficiency. 2. With 3 bidders, the competition level suggests a moderate degree of market interest for this service. 3. The contract duration of 475 days indicates a medium-term engagement for operational services. 4. The award was made under full and open competition, suggesting a broad outreach to potential contractors. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized training and technical schools, a niche sector. 6. The contract's value of $16.1 million places it within a significant spending range for educational services.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar Job Corps center operations. The cost-plus-incentive-fee (CPIF) pricing structure can lead to cost overruns if not managed tightly, but also offers potential savings if performance targets are met. Without specific performance metrics and historical cost data for this center, a definitive value assessment is challenging. The base value of $16.1 million for nearly 1.5 years of operation needs to be evaluated against the scope of services provided and the number of individuals served.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the competition level appears moderate. This suggests that while there was interest in the contract, it may not have attracted the maximum possible number of potential offerors, which could influence price negotiation and discovery.

Taxpayer Impact: A competitive process, even with three bidders, generally benefits taxpayers by encouraging more favorable pricing and service offerings compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the individuals enrolled in the Delaware Valley Job Corps program, who will receive vocational training and support services. The contract ensures the continued operation and delivery of essential training and employment services within the region. The geographic impact is focused on the Delaware Valley area, providing local workforce development opportunities. The contract supports the workforce by providing jobs for instructors, administrators, and support staff at the Job Corps center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee (CPIF) contracts if performance targets are not met or if scope creep occurs.
The moderate number of bidders (3) might indicate potential limitations in market reach or contractor capacity for this specific type of service.
Ensuring consistent quality of training and placement services across the contract duration will be critical for program success.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
The CPIF contract type incentivizes the contractor to achieve specific performance goals, potentially leading to better outcomes.
The contract supports a vital federal program aimed at workforce development and youth employment.

Sector Analysis

This contract falls within the education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at preparing young people for careers. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and federal funding for workforce development programs. The market for operating such centers is specialized, often involving organizations with experience in education, training, and social services.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Typically, large federal contracts are reviewed for opportunities to engage small businesses. Without specific information on subcontracting plans or set-aside goals, the direct impact on the small business ecosystem remains unclear, though the prime contractor may engage small businesses for support services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. Accountability measures are likely tied to the performance standards and incentive fee structure within the Cost Plus Incentive Fee (CPIF) agreement. Transparency would be facilitated through contract award databases and potentially through program performance reporting, though detailed operational oversight specifics are not provided.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Education Grants

Risk Flags

Potential for cost overruns in CPIF contracts.
Moderate competition level may impact price optimization.
Contractor's capacity and experience with large federal contracts need verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $16.1 million to DYNAMIC EDUCATIONAL SYSTEMS INC. OPERATION OF THE DELAWARE VALLEY JOB CORPS CENTER

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 $16.1 million.

What is the period of performance?

Start: 2005-10-19. End: 2007-02-06.

What is the historical performance record of Dynamic Educational Systems Inc. with federal contracts, particularly those related to educational or training services?

A thorough review of Dynamic Educational Systems Inc.'s contract history would be necessary to assess their performance record. This would involve examining past federal awards, including their value, duration, type of service, and any reported issues such as contract terminations, disputes, or performance deficiencies. Specifically, looking at their experience managing similar educational facilities or workforce development programs would provide relevant context. A positive track record with on-time delivery, within-budget performance, and meeting or exceeding performance metrics would indicate a lower risk for this current contract. Conversely, a history of performance issues could raise concerns about their capacity to effectively operate the Delaware Valley Job Corps Center.

How does the awarded amount of $16.1 million compare to the operational costs of similar Job Corps centers across the country?

To benchmark the $16.1 million award, a comparative analysis with other Job Corps centers is essential. This would involve identifying contracts for centers of similar size (in terms of student capacity and geographic service area) and operational scope. Factors such as the cost per student, the range of vocational programs offered, and the level of support services (e.g., housing, meals, transportation) provided would need to be considered. If $16.1 million is significantly higher or lower than the average for comparable centers, it could indicate either exceptional value or potential inefficiencies. Data from the Department of Labor or independent research organizations specializing in workforce development could provide the necessary benchmarks for this comparison.

What are the specific performance metrics and incentive fee structures tied to this contract, and how are they monitored?

The contract utilizes a Cost Plus Incentive Fee (CPIF) structure, which implies that the contractor's final reimbursement is linked to achieving predefined performance objectives. These objectives likely relate to student enrollment, completion rates, job placement success, and potentially the quality of training provided. The specific metrics and the associated fee adjustments would be detailed within the contract's Statement of Work (SOW) and performance clauses. Monitoring these metrics would typically involve regular reporting by the contractor and oversight by the Department of Labor's contracting officer's representative (COR). The effectiveness of the CPIF structure hinges on the clarity of these metrics, the rigor of the monitoring process, and the fairness of the incentive calculations.

What is the historical spending trend for the operation of the Delaware Valley Job Corps Center, and how does this award fit within that pattern?

Analyzing the historical spending for the Delaware Valley Job Corps Center is crucial to understand if the $16.1 million award represents an increase, decrease, or stable level of investment. This would involve examining previous contract awards for the center's operation over several years. Trends in spending could be influenced by factors such as inflation, changes in program scope, shifts in student enrollment targets, or evolving federal funding priorities. If this award is significantly higher than previous contracts, it warrants investigation into the reasons, such as expanded services or increased operational costs. Conversely, a lower award might suggest cost-saving measures or a reduced scope.

What are the potential risks associated with Dynamic Educational Systems Inc. managing this contract, considering their size and experience?

Potential risks associated with Dynamic Educational Systems Inc. managing this contract would depend on their organizational size, financial stability, and specific experience with federal contracts of this magnitude and complexity. If the company is relatively small or new to managing large-scale federal operations, there could be risks related to administrative capacity, financial resources to cover initial operating costs, or navigating complex federal procurement regulations. Risks might also include challenges in recruiting and retaining qualified staff, ensuring compliance with all federal mandates, and effectively managing subcontractors if applicable. A thorough risk assessment would involve reviewing their financial health, management structure, and past performance on similar contracts.

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: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exodyne Inc. (UEI: 073512048)

Address: 8433 N BLACK CANYON HWY STE 184, PHOENIX, AZ, 85021

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

Financial Breakdown

Contract Ceiling: $16,139,061

Exercised Options: $16,139,061

Current Obligation: $16,139,061

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline