Labor Dept. Spends $23.6M on Technical Schools via Non-Competed Contract

Contract Overview

Contract Amount: $23,604,935 ($23.6M)

Contractor: Chugach Government Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2014-10-31

End Date: 2016-04-30

Contract Duration: 547 days

Daily Burn Rate: $43.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $23.6 million to CHUGACH GOVERNMENT SERVICES, INC. for work described as: IGF::CT::IGF Key points: 1. Significant spending on technical and trade schools ($23.6M). 2. Contract was not competed, raising questions about price discovery. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns. 4. Limited information on the specific services provided or their effectiveness.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs as the contractor is reimbursed for expenses plus a fixed fee. Without a competitive bidding process, it's difficult to assess if the $23.6M price was optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was 'NOT COMPETED', indicating a sole-source or limited competition award. This limits price discovery and may result in higher costs for taxpayers compared to a fully competed contract.

Taxpayer Impact: The lack of competition suggests potential overspending, meaning taxpayer funds may not have been used as efficiently as possible.

Public Impact

Taxpayers may have paid more than necessary due to the lack of competition. The effectiveness of the technical and trade school services is not detailed. Citizens may not be aware of how federal funds are being allocated for vocational training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
No clear performance metrics provided

Positive Signals

Contract awarded to a known entity (CHUGACH GOVERNMENT SERVICES, INC.)
Specific NAICS code identified (611519)

Sector Analysis

Spending in the 'Other Technical and Trade Schools' sector (NAICS 611519) can vary widely. Without benchmarks for similar services or contract types, it's hard to definitively assess if $23.6M is high or low.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses were subcontracting opportunities.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was valid and that the pricing was fair and reasonable.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Lack of competition
Cost Plus Fixed Fee contract type
No performance metrics available
Potential for inflated costs due to sole-source award
Limited transparency on service details

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.6 million to CHUGACH GOVERNMENT SERVICES, INC.. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is CHUGACH GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2014-10-31. End: 2016-04-30.

What specific technical and trade school services were procured under this contract, and what was the intended outcome?

The provided data identifies the NAICS code as 'Other Technical and Trade Schools' (611519). However, it does not detail the specific services rendered. Understanding the scope of work, such as vocational training programs, certifications, or curriculum development, is crucial for assessing the contract's value and effectiveness.

What was the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable?

The contract was explicitly marked as 'NOT COMPETED'. A sole-source award typically requires a strong justification, such as a unique capability or urgent need. Without this justification and a competitive bidding process, it is difficult to ascertain how the $23.6M price was validated as fair and reasonable, raising potential value concerns.

What metrics were used to measure the effectiveness and impact of the services provided by CHUGACH GOVERNMENT SERVICES, INC.?

The available data does not include any information on performance metrics or outcomes related to the services provided. Assessing effectiveness would require data on student completion rates, job placement statistics, or the achievement of specific training objectives, which are absent here.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,604,935

Exercised Options: $23,604,935

Current Obligation: $23,604,935

Actual Outlays: $281,183

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline