Labor Dept. Awards $27.1M Contract to Career Systems Development Corp. for Technical Training

Contract Overview

Contract Amount: $27,122,628 ($27.1M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2014-11-17

End Date: 2016-05-31

Contract Duration: 561 days

Daily Burn Rate: $48.3K/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: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15206

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $27.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: IGF::CT::IGF Key points: 1. Contract value of $27.1 million for technical and trade school services. 2. Awarded to Career Systems Development Corporation, a single vendor. 3. Contract duration of 561 days, ending May 2016. 4. Utilized a Cost Plus Fixed Fee pricing structure.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure can incentivize cost overruns. Without clear benchmarks or competitive pricing, assessing value for money is difficult. The provided data lacks sufficient detail to compare pricing against similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for the $27.1 million spent.

Public Impact

Potential for inflated costs due to non-competitive award. Limited transparency on the specific training outcomes and effectiveness. Taxpayer funds allocated without a competitive bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus pricing structure
Lack of competition

Positive Signals

Addresses a specific training need for the Department of Labor.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' category, related to workforce development and training services. Benchmarking spending in this specific niche is challenging without more granular data on the services provided.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if opportunities were missed to engage small businesses in this procurement.

Oversight & Accountability

The contract was awarded by the Department of Labor's Employment and Training Administration. Oversight would involve monitoring the contractor's performance and adherence to the cost-plus fixed fee terms.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Lack of competition
Potential for cost overruns due to CPFF structure
No clear performance metrics provided
Limited transparency on specific services rendered

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $27.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $27.1 million.

What is the period of performance?

Start: 2014-11-17. End: 2016-05-31.

What was the specific nature of the technical and trade school services provided under this contract?

The contract number 611519 indicates 'Other Technical and Trade Schools.' While the agency is the Department of Labor, the precise services are not detailed. This could range from vocational training to specialized skill development programs aimed at improving workforce capabilities.

What risks were associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this contract?

CPFF contracts carry inherent risks of cost escalation, as the contractor is reimbursed for all allowable costs plus a fixed fee. This structure can reduce the contractor's incentive to control costs, potentially leading to higher overall expenditures for the government compared to fixed-price contracts.

How effective was Career Systems Development Corporation in delivering the contracted training services?

The provided data does not include information on the effectiveness or outcomes of the training provided. Assessing effectiveness would require reviewing performance metrics, completion rates, and post-training employment data, which are not available in this dataset.

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: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $27,122,628

Exercised Options: $27,122,628

Current Obligation: $27,122,628

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline