Department of Labor awards $51.9M contract to Adams and Associates for Job Corps Center operations

Contract Overview

Contract Amount: $51,949,871 ($51.9M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2015-04-01

End Date: 2020-08-31

Contract Duration: 1,979 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF OPERATION OF NEW HAMPSHIRE JOB CORPS CENTER

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89521

State: Nevada Government Spending

Plain-Language Summary

Department of Labor obligated $51.9 million to ADAMS AND ASSOCIATES INC for work described as: IGF::OT::IGF OPERATION OF NEW HAMPSHIRE JOB CORPS CENTER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost savings. 3. The award value of $51.9M over approximately 5 years indicates significant program investment. 4. The NAICS code 611519 points to technical and trade schools, a specific educational sector.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure aims to align contractor performance with government objectives. However, CPIF contracts can sometimes lead to higher costs if not managed carefully, as the government bears the cost plus potential incentives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces.

Public Impact

Operates a Job Corps Center, providing vocational training and job placement services to disadvantaged youth. The contract supports workforce development initiatives, aiming to improve employment outcomes for participants. The duration and value suggest a substantial impact on the local economy and the lives of trainees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPIF contracts.
Performance metrics and incentive alignment need close monitoring.
Ensuring effective training and job placement outcomes.

Positive Signals

Awarded through full and open competition.
Focus on workforce development and youth employment.
Contract structure includes incentives for performance.

Sector Analysis

The contract falls within the 'Other Technical and Trade Schools' sector, specifically supporting the Department of Labor's Job Corps program. This program focuses on vocational training for young adults, and spending in this area is benchmarked against similar educational and workforce development contracts.

Small Business Impact

The data indicates that small business participation was not a stated factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were available or utilized.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management oversees this contract. Robust oversight is crucial for CPIF contracts to ensure cost control and effective service delivery.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPIF structure.
Need for rigorous performance monitoring to ensure training quality.
Reliance on contractor's ability to achieve job placement targets.
Ensuring fair competition and preventing contractor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $51.9 million to ADAMS AND ASSOCIATES INC. IGF::OT::IGF OPERATION OF NEW HAMPSHIRE JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES 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 $51.9 million.

What is the period of performance?

Start: 2015-04-01. End: 2020-08-31.

What are the key performance indicators (KPIs) for this contract, and how are they measured to ensure effective job placement and training outcomes?

Key performance indicators likely include trainee completion rates, job placement rates within a specified timeframe post-training, starting wages of placed individuals, and employer satisfaction. These are typically measured through regular reporting by the contractor, verified by government representatives, and potentially through follow-up surveys with trainees and employers to ensure the quality and relevance of the training provided.

How does the Cost Plus Incentive Fee structure mitigate the risk of cost overruns while ensuring contractor motivation for optimal performance?

The CPIF structure sets a target cost and a final cost ceiling, with the contractor and government sharing any savings or overruns within these limits. Incentives are tied to achieving specific performance targets (e.g., cost reduction, quality improvements, timely delivery). This balances the government's risk of cost increases with the contractor's motivation to perform efficiently and effectively, provided the incentive targets are well-defined and achievable.

What is the long-term impact of this contract on the Job Corps program's effectiveness and the career trajectories of its participants?

The long-term impact hinges on the contractor's ability to deliver high-quality, relevant vocational training that leads to sustainable employment. Success is measured by participants achieving higher earning potential, reduced reliance on social services, and contributing to the skilled workforce. Consistent positive outcomes suggest the contract effectively supports the Job Corps mission and participant success.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $128,808,354

Exercised Options: $104,159,364

Current Obligation: $51,949,871

Actual Outlays: $11,361,670

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,040,104

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline