Department of Labor's $52.6M Detroit Job Corps contract awarded to Alutiiq Education & Training, LLC

Contract Overview

Contract Amount: $52,608,639 ($52.6M)

Contractor: Alutiiq Education & Training, LLC

Awarding Agency: Department of Labor

Start Date: 2014-12-01

End Date: 2020-08-31

Contract Duration: 2,100 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: DETROIT JOB CORPS CENTER IGF::OT::IGF

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48206

State: Michigan Government Spending

Plain-Language Summary

Department of Labor obligated $52.6 million to ALUTIIQ EDUCATION & TRAINING, LLC for work described as: DETROIT JOB CORPS CENTER IGF::OT::IGF Key points: 1. The contract utilized a Cost Plus Incentive Fee (CPIF) pricing structure, which can incentivize cost savings but also carries inherent risk if not managed closely. 2. Awarded under full and open competition after exclusion of sources, indicating a competitive process that aimed to secure the best value. 3. The contract duration of 2100 days (approximately 5.75 years) suggests a significant, long-term commitment to service delivery. 4. The North American Industry Classification System (NAICS) code 611519 points to 'Other Technical and Trade Schools,' aligning with the Job Corps mission. 5. The contract was not set aside for small businesses, suggesting the scale or nature of the requirement may have favored larger entities. 6. The base contract type is a Definitive Contract, providing a clear framework for the services to be rendered.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed performance metrics and comparable contract data. The CPIF structure means the final cost could vary based on performance and cost control. However, the duration and scope suggest a substantial investment in workforce development. Further analysis would require comparing the per-student outcomes and operational efficiency against other Job Corps centers or similar training programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This implies that while the competition was intended to be broad, certain sources may have been excluded for specific reasons, potentially related to prior performance or specialized capabilities. The presence of two bids suggests a moderate level of competition, which is generally positive for price discovery but could be higher.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple bidders to offer their best terms, potentially leading to more cost-effective service delivery.

Public Impact

The primary beneficiaries are the individuals enrolled in the Detroit Job Corps Center, who receive vocational training and support services. Services delivered include career training, education, job placement assistance, and supportive services for disadvantaged youth. The geographic impact is focused on Detroit, Michigan, providing local economic and workforce development opportunities. Workforce implications include the creation and sustainment of jobs for instructors, administrators, and support staff at the Job Corps center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns under the CPIF structure if contractor performance or cost controls are not rigorously monitored.
The exclusion of sources, even if justified, warrants scrutiny to ensure it did not unduly limit competition.
Long contract duration requires sustained oversight to ensure continued quality and value.

Positive Signals

Awarded through a competitive process, indicating an effort to secure value.
The CPIF structure, if managed effectively, can align contractor incentives with government objectives.
The contract supports a critical federal program aimed at workforce development for disadvantaged youth.

Sector Analysis

The workforce development sector, particularly vocational training for youth, is a key area of federal investment. The Job Corps program is a significant component of this sector, aiming to address skills gaps and provide pathways to employment. Spending in this area is influenced by economic conditions, federal budget priorities, and the demand for skilled labor. Comparable spending benchmarks would involve analyzing the aggregate federal investment in similar training programs and the operational costs of other Job Corps centers.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses explicitly mentioned in the provided data. This suggests that the primary awardee, Alutiiq Education & Training, LLC, is likely a larger entity capable of performing the full scope of work. The impact on the small business ecosystem would depend on whether the prime contractor utilizes small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight would typically be conducted by the Department of Labor's Office of the Assistant Secretary for Administration and Management, potentially involving program managers and contracting officers. Accountability measures are embedded within the CPIF contract terms, linking contractor payment to performance and cost efficiency. Transparency is generally facilitated through contract award databases and reporting requirements, though specific operational oversight details are not provided.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Department of Labor Grants and Contracts
Youth Development Programs

Risk Flags

Potential for cost overruns due to CPIF structure.
Justification for 'exclusion of sources' requires scrutiny.
Long contract duration necessitates sustained oversight.
Performance metrics and outcomes need rigorous tracking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $52.6 million to ALUTIIQ EDUCATION & TRAINING, LLC. DETROIT JOB CORPS CENTER IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ALUTIIQ EDUCATION & TRAINING, LLC.

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 $52.6 million.

What is the period of performance?

Start: 2014-12-01. End: 2020-08-31.

What is the track record of Alutiiq Education & Training, LLC with federal contracts, particularly within the Department of Labor?

Alutiiq Education & Training, LLC has a history of receiving federal contracts, primarily related to education and training services. Their involvement with the Department of Labor, specifically for Job Corps centers, indicates a specialized focus. Analyzing their past performance on similar contracts would involve reviewing contract award histories, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented disputes or corrective actions. A positive track record suggests reliability and capability, while a history of issues might indicate potential risks for future performance. Without specific performance data for this contract, a general assessment relies on their broader federal contracting history.

How does the per-student cost of this contract compare to other Job Corps centers or similar vocational training programs?

Determining the exact per-student cost requires knowing the number of students served and the total contract expenditure. The total award obligation is $52,608,639.10 over approximately 2100 days. If we assume an average of, for example, 500 students enrolled throughout the contract period, the average annual cost per student would be roughly $50,103. This figure needs to be benchmarked against national averages for Job Corps centers, which can vary significantly based on location, program intensity, and student demographics. Data from the Department of Labor or independent analyses of workforce programs would be necessary for a robust comparison. Factors like the cost of living in Detroit and the specific training programs offered also influence per-student costs.

What are the key performance indicators (KPIs) used to manage the Cost Plus Incentive Fee (CPIF) aspect of this contract?

For a CPIF contract, key performance indicators typically revolve around cost control and achieving specific program outcomes. For the Detroit Job Corps Center, KPIs might include student enrollment rates, retention rates, completion rates for training programs, job placement rates post-completion, and starting wages of placed graduates. The 'incentive' portion of the fee would be tied to exceeding targets in these areas, while the 'cost' aspect would involve monitoring expenditures against a baseline budget. The government would track these KPIs closely to determine the contractor's fee, ensuring alignment between performance, cost efficiency, and taxpayer value. Specific KPIs are usually detailed in the contract's Statement of Work (SOW).

What is the historical spending trend for the Detroit Job Corps Center contract or similar services provided by the Department of Labor?

Historical spending for the Detroit Job Corps Center contract would reveal trends in investment over time. This involves examining previous contract awards to the same or different entities for the same function. Analyzing spending patterns can indicate whether costs have increased, decreased, or remained stable, and whether the contract scope has changed. For instance, if previous contracts were significantly smaller or shorter in duration, the current $52.6 million award might represent an expansion of services or a change in pricing structure. Comparing this to overall Department of Labor spending on workforce development provides context on the program's relative importance and funding stability.

What risks are associated with the 'exclusion of sources' clause in the contract's competition type?

The 'full and open competition after exclusion of sources' clause implies that while the competition was generally open, certain potential bidders were deliberately excluded. The risks associated with this lie in the justification for exclusion. If the exclusions were arbitrary or improperly documented, it could lead to protests, delays, and potential legal challenges, increasing administrative costs. Furthermore, excluding capable sources might limit the pool of bidders, potentially resulting in less competitive pricing or reduced innovation. The government must have a clear, defensible rationale for any exclusions to mitigate these risks and ensure fairness and best value procurement.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corporation

Address: 3909 ARCTIC BLVD STE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $80,616,290

Exercised Options: $71,006,291

Current Obligation: $52,608,639

Actual Outlays: $7,583,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline