Labor Department's $55M Memphis JCC Operation Contract Awarded to MINACT, INC

Contract Overview

Contract Amount: $54,991,050 ($55.0M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2002-05-15

End Date: 2008-09-30

Contract Duration: 2,330 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: OPERATION OF THE MEMPHIS JCC

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38116

State: Tennessee Government Spending

Plain-Language Summary

Department of Labor obligated $55.0 million to MINACT, INC for work described as: OPERATION OF THE MEMPHIS JCC Key points: 1. Contract value of $54.99 million over approximately 6.4 years. 2. Awarded through full and open competition, indicating a broad search for qualified bidders. 3. The contract's duration and value suggest a significant operational commitment. 4. Facilities Support Services (NAICS 561210) are central to this award. 5. The contract was awarded by the Department of Labor's Employment and Training Administration. 6. The contractor, MINACT, INC., is responsible for the operation of the Memphis JCC. 7. The contract was awarded under the 'Combination (Two or More)' type, suggesting a complex scope. 8. The contract was awarded in May 2002 and ended in September 2008.

Value Assessment

Rating: fair

The total contract value of approximately $55 million over 2330 days averages to roughly $23,600 per day. Without specific performance metrics or a breakdown of services provided, it is difficult to benchmark this against similar contracts. The daily operational cost appears moderate for a facility of this nature, but a detailed cost-benefit analysis would be required for a definitive value assessment. The absence of specific performance data makes it challenging to evaluate the contractor's value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' suggesting that the government actively sought bids from all responsible sources. The presence of two bidders (no: 2) indicates some level of competition, but it is on the lower end for a contract of this magnitude. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The limited number of bidders might suggest specific qualifications were required or that the market for such services is concentrated.

Taxpayer Impact: For taxpayers, full and open competition is generally beneficial as it aims to secure the best value by encouraging multiple companies to bid. However, with only two bidders, the potential for significant cost savings through intense competition may have been limited.

Public Impact

The primary beneficiaries are likely the individuals utilizing the services provided by the Memphis JCC. The contract ensures the continued operation and maintenance of the Memphis JCC. Services delivered likely include facility management, support, and potentially program-related operations within the JCC. The geographic impact is focused on Memphis, Tennessee, and the surrounding region served by the JCC. Workforce implications include employment opportunities for staff at the JCC, managed by MINACT, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could potentially lead to higher costs than if more firms had participated.
The contract duration of over six years might present risks if market conditions or service needs change significantly.
Lack of detailed performance data makes it difficult to assess the contractor's efficiency and effectiveness.
The specific nature of 'Facilities Support Services' can be broad, potentially leading to scope creep if not managed tightly.

Positive Signals

Awarded through full and open competition, which is a positive indicator for seeking competitive pricing.
The contractor, MINACT, INC., was selected, implying they met the government's requirements for this service.
The contract was successfully completed, indicating the operational needs were met for its duration.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a range of services necessary for the operation and maintenance of buildings and grounds. This sector is crucial for government operations, ensuring that facilities are functional, safe, and well-maintained. Comparable spending benchmarks for such contracts can vary widely based on the size and type of facility, its location, and the specific services required. The market for facilities support services is often competitive, with many providers ranging from large corporations to smaller, specialized firms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting requirements. This suggests that the primary focus was on securing the best offer from any qualified vendor, regardless of size. Consequently, the direct impact on the small business ecosystem through this specific contract may be minimal, unless MINACT, INC. voluntarily engaged small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would have been provided by the Department of Labor's Employment and Training Administration. Accountability measures would typically involve performance reviews, adherence to contract terms, and financial audits. Transparency is generally facilitated through contract award databases and public reporting, although detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings and Facilities Management
Government Operations Support Contracts
Job Corps Centers Operations
Department of Labor Procurement

Risk Flags

Limited Competition
Potential for Cost Overruns
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $55.0 million to MINACT, INC. OPERATION OF THE MEMPHIS JCC

Who is the contractor on this award?

The obligated recipient is MINACT, 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 $55.0 million.

What is the period of performance?

Start: 2002-05-15. End: 2008-09-30.

What specific services were included under 'Facilities Support Services' for the Memphis JCC?

While the contract specifies 'Facilities Support Services' (NAICS 561210), the exact scope of work is not detailed in the provided data. Typically, this category can encompass a wide range of activities including building operations and maintenance, groundskeeping, custodial services, security, mail services, and potentially support for specific programs housed within the facility. For the Memphis JCC, it likely involved ensuring the facility was operational, safe, and conducive to its intended purpose, which may include supporting Job Corps or other employment and training programs administered by the Department of Labor. A deeper dive into the contract's Statement of Work (SOW) would be necessary to ascertain the precise services rendered by MINACT, INC.

How does the daily cost of this contract compare to similar facility operations?

The contract's total value of $54,991,050 over 2330 days results in an average daily cost of approximately $23,601. Benchmarking this figure requires comparison with similar-sized facilities, particularly those involved in government operations or educational/training programs. Factors such as geographic location (affecting labor and utility costs), the age and condition of the facility, and the specific services included (e.g., 24/7 security, specialized maintenance) significantly influence operational costs. Without data on comparable JCCs or similar government facilities in the Memphis area or nationally, it's challenging to definitively state whether this daily cost is high, low, or average. However, for a facility requiring comprehensive support, this daily rate may fall within a reasonable range, assuming robust service delivery.

What was the track record of MINACT, INC. prior to or during this contract?

The provided data does not include information on MINACT, INC.'s track record prior to or during this contract. To assess their performance, one would need to examine past performance reviews, any documented issues or commendations, and their history with other government contracts. Federal procurement systems often contain past performance information, which is used during the source selection process. Without access to that specific data, it's impossible to evaluate MINACT, INC.'s reliability, quality of service, or adherence to contract terms for this particular award. Their successful completion of the contract suggests they met the minimum requirements, but doesn't detail the quality of their execution.

What were the primary objectives of the Memphis JCC that this contract supported?

The Memphis JCC (Job Corps Center) is part of the Job Corps program, a national initiative administered by the Department of Labor's Employment and Training Administration. The primary objective of Job Corps is to provide vocational training and education to young people, ages 16 through 24, who are disadvantaged or at risk. Therefore, this contract for the 'Operation of the Memphis JCC' directly supported the core mission of Job Corps: preparing young individuals for meaningful careers by offering hands-on skills training, academic education, and essential life skills. The facility support services ensured a functional and safe environment for students and staff to carry out these training and educational activities.

How has federal spending on Facilities Support Services evolved since this contract was awarded?

Federal spending on Facilities Support Services (NAICS 561210) has generally trended upwards over the years, reflecting increased government operations and the outsourcing of non-core functions. Since the award of this contract in 2002 and its completion in 2008, there has been a growing emphasis on efficiency, sustainability, and technology integration in facility management. Budgets for these services are influenced by overall government spending priorities, infrastructure needs, and economic conditions. While this specific contract represents a snapshot from the early 2000s, broader trends indicate a sustained and significant federal investment in maintaining and operating government facilities across various agencies, often through competitive contracting vehicles.

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: 2

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Address: 5220 KEELE ST, JACKSON, MS, 90

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $55,000,063

Exercised Options: $55,000,063

Current Obligation: $54,991,050

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: YES

Timeline