Department of Labor awards $48.1M contract for Job Corps Center operations to Alternate Perspectives Inc

Contract Overview

Contract Amount: $48,157,274 ($48.2M)

Contractor: Alternate Perspectives Inc

Awarding Agency: Department of Labor

Start Date: 2015-07-01

End Date: 2021-11-30

Contract Duration: 2,344 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF CONTRACT SUPPORT FOR THE OPERATION OF SHRIVER JOB CORPS CENTER

Place of Performance

Location: DEVENS, WORCESTER County, MASSACHUSETTS, 01434

State: Massachusetts Government Spending

Plain-Language Summary

Department of Labor obligated $48.2 million to ALTERNATE PERSPECTIVES INC for work described as: IGF::OT::IGF CONTRACT SUPPORT FOR THE OPERATION OF SHRIVER JOB CORPS CENTER Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risk. 3. The duration of the contract was 2344 days, spanning over six years. 4. The contract was awarded to a single vendor, Alternate Perspectives Inc. 5. The NAICS code 611519 suggests services related to technical and trade schools. 6. The contract was awarded under the MAS Schedule, which can streamline procurement but may not always yield the lowest prices.

Value Assessment

Rating: fair

The contract's value of $48.1 million over approximately six years suggests a significant investment in Job Corps Center operations. Benchmarking this against similar contracts for operating educational facilities is crucial. The Cost Plus Incentive Fee (CPIF) structure means the final cost could vary based on performance against targets, making a direct price comparison difficult without knowing the incentive structure and achieved outcomes. Further analysis would require comparing the per-student cost or cost per service delivered against industry standards and other government-operated centers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation is somewhat ambiguous. While it implies an initial broad solicitation, the 'exclusion of sources' suggests that certain potential bidders may have been disqualified or not considered at later stages. The number of offers received (5) indicates some level of competition, but the specific reasons for excluding other sources would need further investigation to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: The limited competition, despite an initial broad approach, may have resulted in a higher price for taxpayers than if a truly open and unrestricted competition had been maintained throughout the process.

Public Impact

Benefits students seeking vocational training and career development through the Job Corps program. Provides essential operational and support services for the Shriver Job Corps Center. Impacts the workforce by equipping individuals with skills for employment in various trades. Geographic impact is localized to the area served by the Shriver Job Corps Center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPIF contract type introduces potential for cost overruns if incentives are not structured effectively.
The 'exclusion of sources' in the competition description warrants further scrutiny to ensure fair market access.
Reliance on a single contractor for operational support over an extended period could lead to vendor lock-in.
The MAS schedule, while efficient, may not always represent the most cost-effective procurement method.

Positive Signals

The contract was awarded following a competitive process, suggesting some level of vetting and comparison.
The use of an incentive fee structure aims to align contractor performance with government objectives.
The Job Corps program itself is designed to provide valuable workforce development services.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at workforce development for at-risk youth. Spending in this area is influenced by federal appropriations for education and labor, as well as the demand for skilled trades. Comparable spending benchmarks would involve analyzing other contracts for operating similar educational or training centers, both government-run and privately contracted.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract (ss: false, sb: false). Therefore, the primary contractor, Alternate Perspectives Inc., is likely not a small business. There is no direct information on subcontracting plans or their impact on the small business ecosystem. Further investigation into the contractor's subcontracting practices would be needed to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. The Inspector General's office for the Department of Labor would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, but detailed performance metrics and financial breakdowns may require specific Freedom of Information Act requests.

Related Government Programs

Job Corps Program
Federal Workforce Development Programs
Vocational Training Contracts
Department of Labor Operations Support

Risk Flags

Ambiguity in competition description ('exclusion of sources')
Potential for cost overruns with CPIF contract type
Lack of detailed performance metrics in public data
Need for benchmarking against similar contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $48.2 million to ALTERNATE PERSPECTIVES INC. IGF::OT::IGF CONTRACT SUPPORT FOR THE OPERATION OF SHRIVER JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is ALTERNATE PERSPECTIVES 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 $48.2 million.

What is the period of performance?

Start: 2015-07-01. End: 2021-11-30.

What is the track record of Alternate Perspectives Inc. in managing government contracts, particularly those related to educational or operational support services?

Alternate Perspectives Inc. has a history of receiving federal contracts, primarily through the General Services Administration's Multiple Award Schedule (MAS). Their contract portfolio often includes services related to program management, administrative support, and operational assistance. For contracts similar to the Shriver Job Corps Center operation, their experience would need to be evaluated based on the scale, complexity, and duration of previous engagements. A review of past performance evaluations, any contract disputes, or termination for cause would provide a clearer picture of their reliability and effectiveness as a government contractor. Specific details on their performance on other Department of Labor contracts or similar educational facility management contracts would be key to assessing their suitability for this role.

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

Directly comparing the cost per student or service under this contract is challenging without access to detailed performance data and the specific incentive fee structure. The total award of $48.1 million over approximately 2344 days (roughly 6.4 years) provides a broad financial figure. To benchmark effectively, one would need to know the average daily student population, the types and volume of services provided (e.g., training hours, placement services, housing), and the final negotiated costs after accounting for incentive fees. Comparing this to publicly available data for other Job Corps centers or similar vocational training initiatives, adjusted for regional cost differences and program scope, would be necessary. The 'Other Technical and Trade Schools' NAICS code (611519) suggests a focus on specific skill development, and cost comparisons should align with the intensity and duration of these training programs.

What are the primary risks associated with the Cost Plus Incentive Fee (CPIF) contract type in the context of operating a Job Corps Center?

The primary risks with a CPIF contract type for operating a Job Corps Center revolve around cost control and the effectiveness of the incentive structure. While CPIF aims to motivate the contractor to perform efficiently by sharing in cost savings or rewarding performance above targets, it can also lead to cost overruns if not managed meticulously. The government bears a significant portion of the costs, and the contractor's profit is tied to achieving specific performance metrics. Risks include: 1) Difficulty in defining and measuring performance targets accurately, potentially leading to disputes or unintended contractor behaviors. 2) The contractor may focus on achieving incentive targets at the expense of other critical, non-incentivized aspects of service delivery. 3) Potential for 'gold plating' or unnecessary expenses if the incentive structure is too generous or poorly defined, as the government absorbs the base cost plus a share of any overruns. 4) Administrative burden on the government to monitor performance and calculate incentive payments accurately.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply about the procurement process and potential fairness to bidders?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a multi-stage procurement process that began with a broad solicitation but later narrowed the field. Initially, all responsible sources were permitted to submit an offer. However, 'exclusion of sources' implies that after the initial offers were received, certain potential bidders were disqualified or deemed ineligible to proceed to the next stage. The reasons for exclusion are critical; they could range from failure to meet technical requirements, past performance issues, or specific regulatory limitations. If the exclusions were based on objective, well-documented criteria, the process could still be considered fair. However, if the exclusions were subjective or lacked clear justification, it could raise concerns about limiting competition and potentially preventing the government from obtaining the best value. The fact that five offers were received indicates some level of competition persisted, but understanding the basis for exclusions is key to assessing the overall fairness and effectiveness of the competition.

How has federal spending on Job Corps Center operations evolved over the years, and does this contract represent a significant shift or continuation?

Federal spending on the Job Corps program, and by extension, the operational contracts for its centers, generally fluctuates based on congressional appropriations and administration priorities. Historically, Job Corps has been a consistent, albeit sometimes debated, component of federal workforce development. This specific contract, awarded in 2015 and ending in 2021, represents a significant investment of approximately $48.1 million for the operation of a single center over its duration. To determine if it represents a shift, one would need to analyze overall Job Corps funding trends during that period and compare the contract value and scope to other center operations contracts awarded concurrently or in preceding years. If overall Job Corps funding was increasing, this contract might be seen as a continuation of established spending levels. Conversely, if funding was declining, a contract of this size could indicate a strategic focus on maintaining certain center operations despite broader budget pressures.

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

Solicitation ID: DOLJ12QA20003

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 209 BROWNS MEADOW CT NE, LEESBURG, VA, 20176

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

Financial Breakdown

Contract Ceiling: $98,153,780

Exercised Options: $77,513,565

Current Obligation: $48,157,274

Actual Outlays: $29,762,764

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline