Labor Department awards $40M sole-source contract to Adams and Associates Inc. for technical training

Contract Overview

Contract Amount: $40,004,236 ($40.0M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2015-06-29

End Date: 2018-12-31

Contract Duration: 1,281 days

Daily Burn Rate: $31.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF GLENMONT JCC SOLE SOURCE CONTRACT

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89521

State: Nevada Government Spending

Plain-Language Summary

Department of Labor obligated $40.0 million to ADAMS AND ASSOCIATES INC for work described as: IGF::OT::IGF GLENMONT JCC SOLE SOURCE CONTRACT Key points: 1. Contract awarded without competition, raising questions about price discovery. 2. Significant contract value of $40M for technical and trade school services. 3. Sole-source award to Adams and Associates Inc. for a duration of over 3 years. 4. Potential for higher costs due to lack of competitive bidding.

Value Assessment

Rating: questionable

The contract's cost-plus incentive fee structure, combined with a sole-source award, makes a direct pricing assessment difficult. Without competitive benchmarks, it's hard to determine if the $40M price reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no competition was sought. This significantly limits price discovery and may lead to inflated costs for the government.

Taxpayer Impact: The lack of competition for a $40M contract means taxpayers may not have received the best possible value, as alternative, potentially lower-cost providers were not considered.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Labor's reliance on a single vendor for technical training raises questions about market availability and vendor lock-in. Lack of transparency in the procurement process limits public understanding of the necessity and cost-effectiveness of this award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Cost-plus contract type

Positive Signals

Contract addresses a specific need for technical training.

Sector Analysis

The 'Other Technical and Trade Schools' sector encompasses a wide range of vocational training services. Government spending in this area can vary significantly based on agency needs and the complexity of the skills being taught. Benchmarks are difficult without specific service details.

Small Business Impact

The data does not indicate whether small businesses were considered or had the opportunity to compete for this contract. The sole-source nature of the award suggests limited opportunities for small business participation.

Oversight & Accountability

The sole-source justification and the lack of competition warrant further oversight to ensure the government received fair value and that this procurement method was appropriate and justified.

Related Government Programs

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

Risk Flags

Sole-source award lacks transparency.
Potential for inflated costs due to no competition.
Limited oversight on price justification.
No indication of small business participation.
Contract duration is substantial.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $40.0 million to ADAMS AND ASSOCIATES INC. IGF::OT::IGF GLENMONT JCC SOLE SOURCE CONTRACT

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 $40.0 million.

What is the period of performance?

Start: 2015-06-29. End: 2018-12-31.

What specific technical and trade skills were covered under this contract, and why was Adams and Associates Inc. uniquely qualified to provide them?

The provided data does not specify the exact technical and trade skills. However, sole-source awards typically occur when a specific vendor possesses unique capabilities, proprietary technology, or specialized expertise essential for the requirement. Further investigation into the contract's statement of work would be needed to detail the skills and the justification for selecting this particular contractor.

What mechanisms were in place to control costs under the Cost Plus Incentive Fee (CPIF) structure for this sole-source contract?

A CPIF contract aims to incentivize both parties to control costs by establishing target costs and sharing any savings or overruns. For this sole-source award, the government would have set a target cost and a fee structure tied to performance against that target. However, without competition, the initial target cost itself might not have been optimized, potentially limiting the effectiveness of the incentive mechanism.

What is the long-term strategy for technical training within the Department of Labor, and does this sole-source contract align with it?

The provided data does not offer insight into the Department of Labor's long-term strategy for technical training. A sole-source award for a significant duration (over 3 years) might suggest a gap in strategic planning or a perceived lack of alternatives. It would be beneficial to understand if future requirements are planned to be competed to ensure ongoing value and access to a broader range of training providers.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $72,538,669

Exercised Options: $55,391,128

Current Obligation: $40,004,236

Actual Outlays: $3,511,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline