Department of Labor's Montgomery Job Corps Center contract awarded to Alutiiq Education & Training, LLC for over $41.8 million

Contract Overview

Contract Amount: $41,835,585 ($41.8M)

Contractor: Alutiiq Education & Training, LLC

Awarding Agency: Department of Labor

Start Date: 2015-07-08

End Date: 2020-11-30

Contract Duration: 1,972 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::CT::IGF OPERATION OF MONTGOMERY JOB CORPS CENTER

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36108

State: Alabama Government Spending

Plain-Language Summary

Department of Labor obligated $41.8 million to ALUTIIQ EDUCATION & TRAINING, LLC for work described as: IGF::CT::IGF OPERATION OF MONTGOMERY JOB CORPS CENTER Key points: 1. The contract's cost-plus incentive fee structure suggests a focus on performance-based outcomes. 2. With a duration of 1972 days, this represents a significant, long-term commitment to educational services. 3. The contract was awarded under full and open competition, indicating a robust bidding process. 4. The absence of small business set-asides may limit opportunities for smaller entities in this specific award. 5. The primary service area is Alabama, suggesting a localized impact for workforce development. 6. The contract's value places it as a substantial investment in vocational training infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided and the number of students served. However, the total award of over $41.8 million over approximately five years indicates a significant investment. Without comparable contracts for similar Job Corps centers, it's difficult to definitively assess value for money. The cost-plus incentive fee (CPIF) structure aims to align contractor incentives with government objectives, potentially leading to better performance and cost control compared to fixed-price contracts, but also carries inherent cost risks if not managed carefully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, certain sources were excluded for specific reasons. With 7 bidders, the competition level appears healthy, suggesting that multiple entities were interested and capable of performing the required services. This level of competition generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging providers to offer the best value.

Public Impact

The primary beneficiaries are students seeking vocational training and employment opportunities in Alabama. The contract supports the operation and management of the Montgomery Job Corps Center, delivering essential educational and career services. The geographic impact is concentrated in Alabama, specifically serving the local community around the Montgomery center. Workforce implications include the training of individuals for in-demand jobs, contributing to the local and regional labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee (CPIF) contracts if performance targets are not met or if costs escalate unexpectedly.
The exclusion of certain sources, even in a full and open competition, warrants understanding the rationale to ensure fairness and maximize competitive potential.
Long contract duration (1972 days) requires sustained oversight to ensure continued quality and adherence to evolving program needs.

Positive Signals

The use of a CPIF contract structure incentivizes the contractor to achieve specific performance goals, potentially leading to improved service delivery.
A healthy number of bidders (7) indicates a competitive market for operating Job Corps centers, which can foster innovation and efficiency.
The contract's focus on vocational training directly addresses workforce development needs, a key government objective.

Sector Analysis

The federal government invests significantly in workforce development and education through programs like Job Corps. This contract falls within the broader 'Other Technical and Trade Schools' (NAICS 611519) sector, which encompasses institutions providing vocational and technical training. The market for operating such centers is competitive, with both for-profit and non-profit organizations vying for government contracts. Comparable spending benchmarks would involve analyzing other Job Corps center contracts across different regions and agencies to assess cost-effectiveness and operational efficiency.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). This means that the competition was open to all eligible sources, including large businesses. While this maximizes the pool of potential offerors, it may limit direct opportunities for small businesses to prime this specific contract. However, the prime contractor, Alutiiq Education & Training, LLC, may engage small businesses as subcontractors, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). The contract's CPIF structure necessitates close monitoring of performance metrics and cost expenditures to ensure alignment with incentive goals. Transparency is facilitated through contract awards databases and reporting requirements. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the Department of Labor's Office of Inspector General (DOL OIG) typically oversees federal programs to prevent waste, fraud, and abuse.

Related Government Programs

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

Risk Flags

Potential for cost creep in CPIF contracts.
Need for robust performance monitoring to ensure value for money.
Understanding the rationale behind source exclusions in FOUC AES.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $41.8 million to ALUTIIQ EDUCATION & TRAINING, LLC. IGF::CT::IGF OPERATION OF MONTGOMERY JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is ALUTIIQ EDUCATION & TRAINING, LLC.

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 $41.8 million.

What is the period of performance?

Start: 2015-07-08. End: 2020-11-30.

What is the track record of Alutiiq Education & Training, LLC in managing federal contracts, particularly those related to education and workforce development?

Alutiiq Education & Training, LLC, as a subsidiary or related entity, likely has a history of federal contracting. To assess their track record, one would need to examine their past performance on similar contracts, including their success in meeting performance targets, managing budgets, and adhering to regulatory requirements. Information on past performance evaluations, any contract disputes, or awards for exceptional performance would be crucial. A review of federal procurement databases (like FPDS or SAM.gov) would reveal the extent and nature of their prior federal awards, allowing for a comparison of their experience against the requirements of this Job Corps center operation contract. Their ability to manage complex educational programs and achieve positive student outcomes would be key indicators of their suitability.

How does the cost per student or cost per training hour for this contract compare to other Job Corps centers or similar vocational training programs nationwide?

Determining the precise cost per student or per training hour requires access to detailed operational data not fully captured in the provided summary, such as the total number of students served and the total hours of training delivered over the contract period. However, an analysis could be initiated by dividing the total contract value ($41.8 million) by the average number of students enrolled annually and the total training hours provided. This calculated metric would then be benchmarked against publicly available data for other Job Corps centers or similar federally funded vocational training initiatives. Variations in cost can be attributed to regional economic factors, the specific trades offered, the intensity of support services, and the overall efficiency of the contractor. A higher cost per unit might be justifiable if it leads to demonstrably better student outcomes, such as higher placement rates or higher starting wages.

What are the specific performance metrics and incentive structures within the Cost Plus Incentive Fee (CPIF) arrangement for this contract, and how are they monitored?

The Cost Plus Incentive Fee (CPIF) structure for this contract means that the final fee paid to Alutiiq Education & Training, LLC is tied to achieving specific performance targets. While the exact metrics are not detailed here, they typically revolve around key performance indicators (KPIs) relevant to Job Corps operations. These could include student enrollment rates, retention rates, completion rates, job placement rates, starting wages of placed graduates, and employer satisfaction. The 'incentive' aspect implies that exceeding certain targets would result in a higher fee for the contractor, while failing to meet minimum standards could reduce the fee. The Department of Labor would have established a system for monitoring these KPIs, likely through regular reporting from the contractor, site visits, and potentially independent evaluations. The contract documents would specify the baseline targets, the range of potential incentive fees, and the process for determining the final fee.

What is the historical spending trend for the operation of the Montgomery Job Corps Center, and how does this contract's value compare to previous awards?

To assess historical spending trends, one would need to consult federal procurement databases (like FPDS-NG) for prior contracts related to the Montgomery Job Corps Center. This would involve identifying previous contract awards for the same facility, noting the contractors, award amounts, contract types, and durations. By comparing the current $41.8 million award over approximately five years to previous periods, analysts can identify patterns of spending increases or decreases, changes in contract types (e.g., from fixed-price to cost-reimbursable), and shifts in the competitive landscape. Significant deviations from historical spending could signal changes in program scope, inflation, or market dynamics. Understanding these trends provides context for the current contract's value and helps identify potential areas for cost savings or efficiency improvements in future procurements.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award type, and how were these mitigated?

The 'Full and Open Competition After Exclusion of Sources' (FOUC AES) award type indicates that while the competition was generally open, specific potential offerors were excluded from bidding. The risks associated with this approach include the possibility that the exclusion criteria might have inadvertently limited the pool of highly qualified bidders, potentially leading to less robust competition and suboptimal pricing. There's also a risk that the exclusion rationale might be perceived as unfair or lacking transparency, potentially leading to protests or challenges. Mitigation strategies employed by the agency would typically involve clearly documenting the justification for excluding specific sources, ensuring that the exclusion criteria are objective and directly related to the contract requirements, and providing a fair opportunity for all eligible and non-excluded sources to compete. The agency's procurement regulations and policies would guide this process to ensure fairness and maximize the potential for achieving best value.

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: TWO STEP

Solicitation ID: DOL13UA20002

Offers Received: 7

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corporation

Address: 3909 ARCTIC BLVD STE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $78,405,332

Exercised Options: $78,405,332

Current Obligation: $41,835,585

Actual Outlays: $9,223,983

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $38,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline