Department of Labor's $50.7M Job Corps contract awarded to Management & Training Corporation shows fair value with 7 bidders

Contract Overview

Contract Amount: $50,722,770 ($50.7M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2015-04-30

End Date: 2020-08-31

Contract Duration: 1,950 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: IGF::OT::IGF WIND RIVER JOB CORPS CENTER

Place of Performance

Location: RIVERTON, FREMONT County, WYOMING, 82501

State: Wyoming Government Spending

Plain-Language Summary

Department of Labor obligated $50.7 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::OT::IGF WIND RIVER JOB CORPS CENTER Key points: 1. The contract demonstrates a reasonable value proposition given the scope of management and training services provided. 2. A competitive landscape with 7 bidders suggests a healthy market for these services, potentially driving favorable pricing. 3. The fixed-price incentive contract type indicates a focus on performance and cost control. 4. The contract's duration and value place it within a typical range for large-scale educational and vocational training programs. 5. This award positions the Department of Labor to leverage established expertise in operating Job Corps centers. 6. The absence of small business set-aside flags suggests the primary contractor is a large entity, with subcontracting potential to be assessed.

Value Assessment

Rating: good

The contract's total value of $50.7 million over approximately five years suggests a significant investment in vocational training. Benchmarking against similar large-scale Job Corps center management contracts indicates that the pricing is within a competitive range. The fixed-price incentive structure incentivizes the contractor to manage costs effectively while meeting performance targets, contributing to overall value for money. The relatively low number of bidders (7) for such a large contract warrants attention, but the final price achieved suggests a degree of successful price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited. With seven bidders participating, the competition level appears adequate for a contract of this magnitude and scope. This level of competition generally supports price discovery and encourages bidders to offer competitive terms. The agency's decision to pursue full and open competition suggests confidence in the market's ability to provide suitable solutions for managing the Job Corps center.

Taxpayer Impact: The full and open competition process, involving seven bidders, likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source or limited competition award. This competitive pressure helps ensure that taxpayer funds are used efficiently for the services rendered.

Public Impact

The primary beneficiaries are students enrolled in the Job Corps program, who receive vocational training and educational services. The contract delivers comprehensive management and operational services for a Job Corps center, including student recruitment, training, and placement. The geographic impact is focused on Wyoming, providing essential workforce development services to the local community. Workforce implications include employment opportunities for instructors, administrative staff, and support personnel at the Job Corps center, as well as the long-term career prospects for program graduates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met or if unforeseen operational challenges arise.
Dependence on a single large contractor for the delivery of critical workforce development services.
Ensuring consistent quality of training and student outcomes across the contract duration.

Positive Signals

The fixed-price incentive contract structure aligns contractor performance with cost efficiency.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract's duration provides stability for program operations and student planning.

Sector Analysis

The education and training sector, particularly vocational and technical education, is a critical component of workforce development. This contract falls under the broader category of government services related to education and training, specifically operating a Job Corps center. The market for managing such centers involves a mix of non-profit organizations and private companies specializing in education, training, and facility management. Comparable spending benchmarks for similar large-scale training programs can vary significantly based on location, student population, and the specific trades offered.

Small Business Impact

The contract was not set aside for small businesses, as indicated by `sb: false`. This suggests that the primary award went to a larger entity. While there is no explicit small business set-aside, the prime contractor, Management & Training Corporation, may engage small businesses as subcontractors for specialized services or supplies. An analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's relevant program office, likely within the Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are embedded in the fixed-price incentive contract, which links payment to performance outcomes and cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Training Contracts
Vocational Education Grants

Risk Flags

Contract Duration
Performance Incentives
Geographic Specificity

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $50.7 million to MANAGEMENT & TRAINING CORPORATION. IGF::OT::IGF WIND RIVER JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

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 $50.7 million.

What is the period of performance?

Start: 2015-04-30. End: 2020-08-31.

What is the historical spending pattern for the Job Corps center managed by Management & Training Corporation?

Historical spending data for this specific Job Corps center managed by Management & Training Corporation would reveal trends in operational costs, student enrollment, and program outcomes over time. Analyzing past contract values, modifications, and performance metrics can provide insights into the contractor's efficiency and the program's effectiveness. For instance, comparing the current $50.7 million award to previous contracts for the same center would indicate whether costs have increased, decreased, or remained stable, and whether the scope of services has changed. Understanding these patterns is crucial for assessing the long-term financial commitment and identifying any potential cost escalations or efficiencies achieved by the contractor.

How does the per-student cost of this Job Corps center compare to other similar centers nationwide?

To assess the value for money, a comparison of the per-student cost at this Wind River Job Corps Center against national averages for similar facilities is essential. This involves calculating the total contract value divided by the average number of students served annually. If this center's per-student cost is significantly higher than the average, it could indicate inefficiencies in management, higher operational expenses in Wyoming, or a more comprehensive service offering. Conversely, a lower per-student cost might suggest efficient operations or a less intensive training program. Such benchmarking allows the Department of Labor to identify best practices and areas for potential cost savings across the Job Corps network.

What are the key performance indicators (KPIs) tied to the incentive portion of this fixed-price incentive contract?

The fixed-price incentive (FPI) contract structure implies that the contractor's final profit is tied to achieving specific performance targets and cost objectives. Key performance indicators (KPIs) for a Job Corps center typically include metrics such as student graduation rates, job placement rates in relevant fields, average wages of placed graduates, student retention rates, and compliance with safety and operational standards. The incentive portion would likely reward the contractor for exceeding baseline targets in these areas, while potentially penalizing underperformance. Understanding these specific KPIs is crucial for evaluating whether the contract effectively incentivizes the contractor to deliver high-quality training and achieve positive outcomes for students.

What is the track record of Management & Training Corporation in managing government contracts, particularly within the Job Corps program?

Management & Training Corporation (MTC) has a significant track record in managing government contracts, including numerous Job Corps centers across the United States. Assessing their past performance involves reviewing contract histories, including any awards, penalties, or contract terminations. Data on their success in meeting performance metrics, managing budgets, and maintaining compliance with federal regulations for other Job Corps centers would provide valuable context. A review of past performance evaluations and any reported issues or successes can help determine MTC's reliability and effectiveness as a contractor for this significant federal program.

What are the potential risks associated with the long duration (approx. 5 years) of this contract?

The approximately five-year duration of this contract presents several potential risks. Firstly, it locks in a specific contractor and operational model for an extended period, potentially limiting the agency's flexibility to adapt to changing workforce needs or adopt new training methodologies if they emerge. Secondly, long-term contracts can sometimes lead to complacency on the part of the contractor, assuming continued renewal without consistently demonstrating exceptional performance. Thirdly, economic fluctuations or changes in federal funding priorities over five years could impact the program's stability or the contractor's ability to meet evolving requirements within the fixed-price structure. Finally, the longer the contract, the greater the potential impact of any unforeseen operational failures or contractor misconduct.

How does the geographic location in Wyoming influence the contract's operational costs and student recruitment?

The contract's location in Wyoming could influence operational costs and student recruitment in several ways. Wyoming's potentially lower cost of living compared to major metropolitan areas might reduce overhead expenses for staff salaries and facility maintenance. However, it could also present challenges in recruiting a diverse student population and specialized instructors, given the state's smaller population base. Transportation costs for students traveling to and from the center, and the availability of local industries for job placement post-training, are also factors influenced by the geographic location. Understanding these regional dynamics is key to assessing the contract's overall feasibility and effectiveness.

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: 7

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $55,165,278

Exercised Options: $54,720,574

Current Obligation: $50,722,770

Actual Outlays: $12,051,626

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline