DOL's $45.8M Facilities Support Contract with Management & Training Corp. Faces Scrutiny

Contract Overview

Contract Amount: $45,784,213 ($45.8M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2002-06-01

End Date: 2007-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: KITTRELL JCC OPNS, CTS

Place of Performance

Location: KITTRELL, VANCE County, NORTH CAROLINA, 27544

State: North Carolina Government Spending

Plain-Language Summary

Department of Labor obligated $45.8 million to MANAGEMENT & TRAINING CORPORATION for work described as: KITTRELL JCC OPNS, CTS Key points: 1. Contract awarded for facilities support services, a common government need. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract type (Cost Plus Incentive Fee) can lead to cost overruns if not managed carefully. 4. The long duration (5 years) warrants close monitoring for sustained value. 5. No small business participation noted, which could be a missed opportunity.

Value Assessment

Rating: fair

The contract's total value of $45.8M over 5 years averages $9.16M annually. Benchmarking against similar facilities support contracts is difficult without specific service details, but the annual spend appears moderate for a large-scale operation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can drive competitive pricing. However, the specific pricing mechanisms within the Cost Plus Incentive Fee structure need careful evaluation to ensure cost efficiency.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value. The CPIF structure, however, requires diligent oversight to prevent excessive costs.

Public Impact

Taxpayers fund essential government operations, including facility maintenance and support. The contract impacts employment within the facilities support services sector. Government efficiency in managing service contracts directly affects public service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee structure can incentivize overspending.
Long contract duration may reduce flexibility and opportunities for re-competition.
Lack of small business participation.

Positive Signals

Awarded via full and open competition.
Contract supports essential government operations.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing maintenance, cleaning, and operational support for government facilities. Spending in this sector is consistent across agencies, with benchmarks varying widely based on facility size and complexity.

Small Business Impact

The data indicates no small business participation in this contract. Agencies are often encouraged to set aside portions of contracts for small businesses to promote economic growth and competition. The absence here may represent a missed opportunity for small business engagement.

Oversight & Accountability

The contract's long duration and cost-plus nature necessitate robust oversight from the Department of Labor to ensure performance standards are met and costs remain reasonable. Regular audits and performance reviews are critical for accountability.

Related Government Programs

Facilities Support Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Cost Plus Incentive Fee (CPIF) contract type.
Long contract duration (5 years).
No small business participation.
Potential for cost overruns without strong oversight.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $45.8 million to MANAGEMENT & TRAINING CORPORATION. KITTRELL JCC OPNS, CTS

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $45.8 million.

What is the period of performance?

Start: 2002-06-01. End: 2007-05-31.

How effectively does the Cost Plus Incentive Fee structure align with achieving cost savings and optimal performance for facilities support services?

The CPIF structure aims to incentivize both cost control and performance by allowing the contractor to earn higher profits if costs are below target and performance exceeds expectations. However, it requires precise target setting and rigorous monitoring by the government to prevent the contractor from prioritizing profit over genuine cost efficiency or service quality. Without clear metrics and strong oversight, it can lead to inflated costs.

What are the primary risks associated with the 5-year duration of this facilities support contract, and how can they be mitigated?

The primary risks of a long duration include potential for service degradation over time, reduced flexibility to adapt to changing needs, and missed opportunities to leverage market innovations or achieve better pricing through re-competition. Mitigation strategies include incorporating robust performance metrics, regular contract reviews, clear mechanisms for scope adjustments, and potentially phased re-competition or option periods rather than a single long term.

Given the full and open competition, what factors might have led to the selection of a Cost Plus Incentive Fee contract type for facilities support?

The selection of CPIF for facilities support, even under full and open competition, might stem from the inherent uncertainties in predicting exact operational costs for large facilities over an extended period. This contract type allows for flexibility in managing unforeseen issues while incentivizing performance. However, it places a significant burden on the agency to define clear performance standards and cost targets to ensure fair pricing and prevent contractor opportunism.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 NORTH MARKETPLACE DR, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $56,317,512

Exercised Options: $46,120,846

Current Obligation: $45,784,213

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline