Department of Labor awards $15.5M contract for Job Corps center operations in New York

Contract Overview

Contract Amount: $15,461,970 ($15.5M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2005-10-25

End Date: 2006-06-30

Contract Duration: 248 days

Daily Burn Rate: $62.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE SO. BRONX AND BROOKLYN JOB CORPS CENTERS

Place of Performance

Location: BRONX, BRONX County, NEW YORK, 10453

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $15.5 million to RES-CARE, INC for work described as: OPERATION OF THE SO. BRONX AND BROOKLYN JOB CORPS CENTERS Key points: 1. Contract focuses on operating Job Corps centers in the Bronx and Brooklyn. 2. Awarded to RES-CARE, INC, a single contractor for both locations. 3. Contract type is Cost Plus Incentive Fee, suggesting performance-based incentives. 4. Duration of 248 days indicates a short-term operational need or transition. 5. The contract falls under the 'Other Technical and Trade Schools' NAICS code. 6. Geographic focus is New York City, specifically the Bronx and Brooklyn boroughs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar center operations. The Cost Plus Incentive Fee (CPIF) structure aims to align contractor performance with government objectives, but the overall value depends heavily on the incentive structure and the contractor's ability to meet performance targets efficiently. The raw dollar amount of $15.5 million for approximately 8 months of operation for two centers suggests a significant investment per center per month.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that RES-CARE, INC was selected suggests they offered the best value proposition among the competing firms. The number of bidders is not specified, but full and open competition generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers and potentially lower prices due to market forces.

Public Impact

The primary beneficiaries are the individuals enrolled in the Job Corps program in the Bronx and Brooklyn, who will receive training and support services. Services delivered include the operation and management of two Job Corps centers, encompassing training, housing, and career placement assistance. The geographic impact is concentrated within New York City, specifically serving residents of the Bronx and Brooklyn. Workforce implications include the direct employment of staff by RES-CARE, INC to manage and operate the centers, as well as the indirect impact of training individuals for skilled employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the Cost Plus Incentive Fee structure if incentives are not well-defined or managed.
Short contract duration (248 days) may indicate a transitional period, raising questions about long-term operational stability.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the incentive fee.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The use of an incentive fee structure indicates a focus on performance and achieving desired outcomes.
The contract addresses a critical need for workforce development through the Job Corps program.

Sector Analysis

This contract falls within the education and workforce development sector, specifically focusing on vocational training programs. The Job Corps program is a significant federal initiative aimed at providing disadvantaged youth with the skills and education needed to secure employment. The market for operating such centers involves educational service providers and management companies. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers or similar vocational training facilities.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses participated in the bidding process or could be involved as subcontractors. However, without further information, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures are likely tied to the performance metrics and incentive fee structure outlined in the Cost Plus Incentive Fee contract. Transparency would be facilitated through contract award databases and potentially through program performance reporting, though specific oversight details are not provided.

Related Government Programs

Job Corps Program
Workforce Investment Act Programs
Federal Job Training Programs

Risk Flags

Short contract duration may indicate transitional or interim service.
Cost Plus Incentive Fee structure requires careful monitoring of performance metrics.
Lack of detailed performance data limits immediate value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $15.5 million to RES-CARE, INC. OPERATION OF THE SO. BRONX AND BROOKLYN JOB CORPS CENTERS

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $15.5 million.

What is the period of performance?

Start: 2005-10-25. End: 2006-06-30.

What is the historical spending pattern for the operation of the Bronx and Brooklyn Job Corps centers?

Historical spending data for the specific operation of the Bronx and Brooklyn Job Corps centers is not available in the provided data. However, the current award of $15,461,970 for a 248-day period (approximately 8 months) suggests an average monthly operational cost of roughly $1.98 million for both centers combined. To understand historical patterns, one would need to access past contract awards for these specific centers or similar Job Corps centers managed by the Department of Labor. Analyzing trends in funding levels, contract durations, and contractor performance over time would provide a clearer picture of the program's financial history and evolution.

How does the cost per enrollee for this contract compare to national averages for Job Corps centers?

Determining the cost per enrollee requires knowing the number of individuals served by the Bronx and Brooklyn Job Corps centers during the contract period. This information is not provided in the data. If, for example, the centers served 1,000 students, the approximate cost per enrollee would be $15,461,970 / 1,000 = $15,462 over the 8-month period, or about $1,933 per enrollee per month. National averages for Job Corps centers can vary significantly based on location, services offered, and student demographics. A comprehensive comparison would necessitate accessing the Department of Labor's annual reports or program evaluations that detail cost per enrollee data across the Job Corps network.

What specific performance metrics are tied to the incentive fee for RES-CARE, INC?

The provided data specifies the contract type as 'COST PLUS INCENTIVE FEE' (CPIF) but does not detail the specific performance metrics or targets that trigger the incentive fee for RES-CARE, INC. Typically, CPIF contracts link a portion of the contractor's profit to achieving specific, measurable performance objectives. For Job Corps centers, these metrics could include student graduation rates, job placement rates, starting wages of placed graduates, student retention, or compliance with safety and operational standards. The effectiveness of the incentive fee in driving value for money depends entirely on how well these metrics are defined, measured, and incentivized within the contract's terms and conditions.

What is RES-CARE, INC's track record in operating Job Corps centers or similar educational facilities?

Information regarding RES-CARE, INC's specific track record in operating Job Corps centers or similar educational facilities is not included in the provided contract data. To assess their experience and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS), agency performance evaluations, or contractor past performance reviews. A thorough assessment would examine their history with government contracts, including the size and scope of previous operations, client satisfaction, compliance records, and any instances of contract disputes or terminations. This background information is crucial for understanding the reliability and capability of the selected contractor.

What is the significance of the short contract duration (248 days)?

The contract duration of 248 days (approximately 8 months) is relatively short for the operation of major facilities like Job Corps centers. This brevity could signify several possibilities: it might be a short-term operational contract to bridge a gap between previous and future long-term contracts, it could be part of a larger phased approach to service delivery, or it might represent a pilot program or a transition phase. Without additional context, it raises questions about the stability of operations and the contractor's long-term commitment or involvement. It could also imply that the Department of Labor was seeking to re-evaluate or re-compete the services within a shorter timeframe.

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: Carestream Health, Inc. (UEI: 244882650)

Address: 10140 LINN STATION RD, LOUISVILLE, KY, 40223

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,461,970

Exercised Options: $15,461,970

Current Obligation: $15,461,970

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline