Department of Labor's $47.5M contract for Brunswick Job Corps Center operations awarded to Management & Training Corporation

Contract Overview

Contract Amount: $47,539,286 ($47.5M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2004-01-01

End Date: 2009-01-31

Contract Duration: 1,857 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATE THE BRUNSWICK JOB CORPS CENTER

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31520

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $47.5 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATE THE BRUNSWICK JOB CORPS CENTER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost savings and performance. 3. The duration of the contract is substantial at 1857 days, indicating a long-term service requirement. 4. The contractor, Management & Training Corporation, has a significant role in operating Job Corps centers. 5. The contract is for operating a Job Corps center, a program focused on vocational training for at-risk youth. 6. The North American Industry Classification System (NAICS) code 611519 points to 'Other Technical and Trade Schools'.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and performance metrics. However, the Cost Plus Incentive Fee structure suggests an attempt to align contractor incentives with government objectives. The total award amount of $47.5 million over approximately five years indicates a significant investment in vocational training services. Further analysis would require comparing the per-student cost and training outcomes against other Job Corps centers and similar vocational training programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bids (no: 3) indicates a degree of competition, which is generally favorable for price discovery and ensuring the government receives competitive offers. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

Benefits at-risk youth by providing vocational training and educational services. Delivers essential services for the operation of the Brunswick Job Corps Center. Has a geographic impact primarily in Georgia, where the center is located. Supports the workforce development sector by equipping individuals with job skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus contracts if not managed tightly.
Performance variability depending on the effectiveness of the incentive fee structure.
Reliance on a single contractor for a critical youth development program.

Positive Signals

Full and open competition suggests a robust selection process.
Cost Plus Incentive Fee structure can align contractor and government interests.
Long contract duration provides stability for program operations and participant services.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at workforce development. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers and similar government-funded training programs. The market for operating such centers is likely specialized, involving entities with experience in education, training, and facility management.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting goals for this contract. As it was awarded under full and open competition, it's possible that small businesses could have bid directly or participated as subcontractors. Further investigation into the contractor's subcontracting plan would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to program specific regulations. The Cost Plus Incentive Fee structure itself implies a level of performance monitoring to determine incentive payouts. Transparency would depend on the Department's reporting practices regarding contract performance and expenditures.

Related Government Programs

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

Risk Flags

Cost Plus contract type requires careful monitoring to prevent cost overruns.
Performance metrics for incentive fee must be clearly defined and measurable.
Long-term contract duration necessitates ongoing evaluation of contractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $47.5 million to MANAGEMENT & TRAINING CORPORATION. OPERATE THE BRUNSWICK JOB CORPS CENTER

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 $47.5 million.

What is the period of performance?

Start: 2004-01-01. End: 2009-01-31.

What is the historical spending pattern for the Brunswick Job Corps Center operations?

Analyzing the historical spending for the Brunswick Job Corps Center operations requires access to prior contract awards and modifications. The current contract, awarded in 2004 and ending in 2009, represents a specific period. To understand the full historical pattern, one would need to examine all preceding and subsequent contracts for this center, noting any significant increases or decreases in funding, changes in contractors, and the reasons behind such shifts. This would reveal trends in operational costs and potential inflationary pressures or efficiency gains over time. Without access to that historical data, it's impossible to provide a detailed pattern.

How does the performance of Management & Training Corporation at this center compare to other Job Corps centers they operate?

Assessing the comparative performance of Management & Training Corporation (MTC) at the Brunswick Job Corps Center against other centers they operate necessitates access to specific performance metrics. These metrics typically include student graduation rates, job placement rates, starting wages of placed graduates, and student retention. Federal agencies like the Department of Labor often collect and report on these Key Performance Indicators (KPIs). A thorough comparison would involve analyzing MTC's performance data across all the Job Corps centers they manage, looking for consistent trends or significant deviations at the Brunswick location. This would help identify best practices or areas needing improvement.

What are the specific performance metrics tied to the incentive fee in this Cost Plus Incentive Fee (CPIF) contract?

The specific performance metrics tied to the incentive fee in this Cost Plus Incentive Fee (CPIF) contract are not detailed in the provided data. Typically, CPIF contracts link incentive payments to achieving predefined goals related to cost savings, schedule adherence, quality standards, or specific program outcomes. For a Job Corps center operation, these metrics could include factors like student enrollment targets, completion rates, job placement success, or cost efficiencies in facility management and training delivery. The contract document itself would contain the precise formula and targets for earning incentive fees.

What is the typical cost per student for operating a Job Corps center, and how does this contract's implied cost compare?

The typical cost per student for operating a Job Corps center can vary significantly based on location, program offerings, and student demographics. While the provided data gives a total contract value of $47.5 million over approximately 1857 days (roughly 5 years), it does not specify the number of students served. To calculate an implied cost per student, one would need the average daily or annual student census for the Brunswick center during the contract period. Generally, Job Corps costs per student can range from $15,000 to over $30,000 annually, depending on these factors. A detailed comparison would require knowing the student numbers and comparing them to national averages or benchmarks for similar centers.

What is the track record of Management & Training Corporation in managing federal contracts, particularly in the education and training sector?

Management & Training Corporation (MTC) has a long-standing track record of managing federal contracts, primarily in the corrections and Job Corps sectors. They operate numerous facilities across the United States. Their experience includes managing large-scale government contracts, which involves compliance with federal regulations, budget management, and personnel oversight. Reviews of their performance often highlight their operational capabilities, but like any large contractor, they may have faced scrutiny regarding specific contract performance or cost management issues over the years. A comprehensive assessment would involve reviewing past performance evaluations and any documented disputes or successes across their portfolio of federal contracts.

Are there any known risks associated with the specific services provided under this contract, such as training effectiveness or participant safety?

Risks associated with operating a Job Corps center, and thus under this contract, can encompass several areas. Training effectiveness is a key concern; if the programs do not lead to employable skills, the program's value is diminished. Participant safety, both within the center facilities and during off-site training or activities, is paramount. Other risks include contractor compliance with federal regulations, financial management, and ensuring equitable service delivery to diverse participant populations. The Department of Labor's oversight and the CPIF structure are designed to mitigate some of these risks by incentivizing performance and ensuring accountability.

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: TWO STEP

Offers Received: 3

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: $47,539,286

Exercised Options: $47,539,286

Current Obligation: $47,539,286

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline