Labor Dept. Awards $7.4M Bridge Contract for Technical Training Amidst Protest

Contract Overview

Contract Amount: $26,134,956 ($26.1M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2015-04-27

End Date: 2016-06-30

Contract Duration: 430 days

Daily Burn Rate: $60.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF EARLE C. CLEMENTS JCC BRIDGE CONTRACT AWARD. DOLETA15C0041. 5-MONTH BRIDGE CONTRACT [5.1.15 - 9.30.15] DUE TO THE PROTEST OF THE NEWLY AWARDED CONTRACT. INCREASE FUNDING BY $7,374,882 [OPS = $6,932,389; BASE FEE = $442,493]. FUNDING THRU 7.31.15

Place of Performance

Location: CENTERVILLE, DAVIS County, UTAH, 84014

State: Utah Government Spending

Plain-Language Summary

Department of Labor obligated $26.1 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::OT::IGF EARLE C. CLEMENTS JCC BRIDGE CONTRACT AWARD. DOLETA15C0041. 5-MONTH BRIDGE CONTRACT [5.1.15 - 9.30.15] DUE TO THE PROTEST OF THE NEWLY AWARDED CONTRACT. INCREASE FUNDING BY $7,374,882 [OPS = $6,932,389; BASE FEE = $442,493]. FUNDING THRU 7.31.15 Key points: 1. The $7.4M bridge contract extends services for 5 months, covering the period of a protest on a newly awarded contract. 2. The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The primary sector is Other Technical and Trade Schools, indicating a focus on workforce development and vocational training.

Value Assessment

Rating: fair

The $7.4M award for a 5-month bridge contract appears high, especially considering it's a temporary measure. Benchmarking against similar short-term training contracts would be necessary to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the urgency of a bridge contract might limit the time for thorough price discovery.

Taxpayer Impact: Taxpayers are funding essential services during a contract dispute, ensuring continuity. The CPFF structure requires careful oversight to prevent excessive costs.

Public Impact

Ensures continuity of essential workforce development services for individuals in Utah. Provides a temporary solution while a protest regarding a new contract award is resolved. Supports the Department of Labor's mission to promote workforce training and employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs.
Bridge contracts, by nature, can be more expensive due to urgency.
Lack of specific performance metrics in the provided data.
Potential for scope creep in a temporary contract.

Positive Signals

Awarded under full and open competition.
Ensures service continuity during a protest period.
Supports critical workforce training programs.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical skills. Spending in this area is crucial for workforce development and economic competitiveness.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The CPFF contract type necessitates robust oversight from the Department of Labor to ensure costs are reasonable and allocable. Monitoring expenditures against the fixed fee and base fee is critical.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type.
Bridge contract awarded due to protest.
Short duration (5 months) may limit long-term planning.
Potential for cost overruns inherent in CPFF.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $26.1 million to MANAGEMENT & TRAINING CORPORATION. IGF::OT::IGF EARLE C. CLEMENTS JCC BRIDGE CONTRACT AWARD. DOLETA15C0041. 5-MONTH BRIDGE CONTRACT [5.1.15 - 9.30.15] DUE TO THE PROTEST OF THE NEWLY AWARDED CONTRACT. INCREASE FUNDING BY $7,374,882 [OPS = $6,932,389; BASE FEE = $442,493]. FUNDING THRU 7.31.15

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 $26.1 million.

What is the period of performance?

Start: 2015-04-27. End: 2016-06-30.

What is the cost-effectiveness of this bridge contract compared to potential delays or service interruptions?

The $7.4M cost for a 5-month bridge contract needs careful evaluation against the cost of service disruption. While ensuring continuity is vital, the CPFF structure warrants scrutiny to prevent inflated expenses. A detailed cost-benefit analysis comparing this temporary award to the potential economic and social impact of halted training programs is essential for determining true cost-effectiveness.

What are the specific risks associated with the Cost Plus Fixed Fee structure in this context?

The primary risk of a CPFF contract is that the contractor may have less incentive to control costs, as the government agrees to pay all allowable costs plus a fixed fee. In a bridge contract scenario, this risk is amplified by the potential for rushed decision-making and less rigorous cost scrutiny due to the urgency. This could lead to higher-than-necessary expenditures for the taxpayer.

How effectively does this bridge contract maintain the intended outcomes of the original, protested contract?

The effectiveness hinges on whether the services provided under this bridge contract align with the objectives of the original contract. Without details on the original contract's goals and the specific services being rendered, it's difficult to assess. However, the primary goal of a bridge contract is continuity, suggesting it aims to maintain service levels, but potentially not the full scope or innovation of a newly awarded, fully vetted contract.

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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR STE 100, CENTERVILLE, UT, 84014

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: $26,134,956

Exercised Options: $26,134,956

Current Obligation: $26,134,956

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline