Department of Labor awards $82.6M contract for Job Corps center operations, serving youth vocational training

Contract Overview

Contract Amount: $82,587,738 ($82.6M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2015-04-01

End Date: 2020-09-30

Contract Duration: 2,009 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS A NEW CONTRACT FOR OPERATION OF THE TONGUE POINT JOB CORPS CENTER.

Place of Performance

Location: ASTORIA, CLATSOP County, OREGON, 97103

State: Oregon Government Spending

Plain-Language Summary

Department of Labor obligated $82.6 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS A NEW CONTRACT FOR OPERATION OF THE TONGUE POINT JOB CORPS CENTER. Key points: 1. The contract focuses on vocational training for young adults, a critical service for workforce development. 2. Management & Training Corporation is the incumbent contractor, suggesting potential for stable service delivery. 3. The contract's firm fixed-price structure shifts performance risk to the contractor. 4. Operations are located in Oregon, impacting a specific regional workforce and youth population. 5. The award falls under 'Other Technical and Trade Schools' NAICS code, indicating a specialized service area.

Value Assessment

Rating: good

The contract value of $82.6 million over approximately five years suggests a significant investment in youth vocational training. Benchmarking against similar large-scale training center operations would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively. The duration and scale suggest a substantial operational footprint.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair market prices and encourage innovation. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through market forces and encourages a wider pool of qualified providers to offer their best pricing.

Public Impact

Youth aged 16-24 benefit from vocational training and career development services. The contract supports the operation of the Tongue Point Job Corps Center. Services are geographically focused in Oregon, providing local economic and workforce development benefits. The program aims to improve employment outcomes and earning potential for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to prioritize profit over service quality if not adequately monitored.
Dependence on a single center's operational success for a large youth population.
Ensuring equitable access to training opportunities across diverse youth demographics.

Positive Signals

Focus on vocational training addresses critical workforce needs.
Firm fixed-price contract incentivizes contractor efficiency.
Full and open competition suggests a competitive market for these 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 addressing youth unemployment and underemployment. Comparable spending benchmarks would involve looking at other large-scale vocational training contracts or educational service providers, though the specific nature of Job Corps makes direct comparisons challenging. The market for such services is driven by government funding and the need for skilled labor.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the nature of the services required, but there is no explicit indication of such provisions in the data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management, and potentially the Job Corps program office. Accountability measures would be defined in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract award data, but detailed operational oversight mechanisms are not specified here. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Youth Workforce Development Programs
Vocational Education Grants
Federal Job Training Initiatives

Risk Flags

Potential for cost overruns if contractor efficiency is poor under FFP.
Risk of service quality degradation if profit motive outweighs student outcomes.
Dependence on federal appropriations for continued program funding.
Geographic concentration of services in Oregon may limit broader impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $82.6 million to MANAGEMENT & TRAINING CORPORATION. IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS A NEW CONTRACT FOR OPERATION OF THE TONGUE POINT 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 $82.6 million.

What is the period of performance?

Start: 2015-04-01. End: 2020-09-30.

What is the historical spending trend for the Job Corps program, and how does this contract compare?

The Job Corps program has historically received significant federal funding, often in the hundreds of millions of dollars annually, to support its network of training centers across the country. This specific contract for the Tongue Point Job Corps Center, valued at approximately $82.6 million over its term, represents a substantial portion of the program's budget allocated to a single center's operations. Annual appropriations for Job Corps can fluctuate based on congressional priorities and economic conditions. Comparing this contract's value requires understanding the average cost per student served and the scope of services provided by different centers. Larger centers or those offering a wider array of vocational programs may command higher contract values. The $82.6 million figure suggests a large-scale, comprehensive training operation.

What is Management & Training Corporation's track record with federal contracts, particularly in the Job Corps program?

Management & Training Corporation (MTC) is a well-established government contractor with extensive experience operating Job Corps centers. They have managed numerous Job Corps facilities across the United States for many years. Their track record generally includes successful operation of these centers, focusing on providing vocational training, education, and support services to disadvantaged youth. While specific performance metrics and any past issues are not detailed in this data, MTC's continued success in securing and retaining Job Corps contracts indicates a generally positive performance history and a strong understanding of the program's requirements. Government contract databases and Inspector General reports would provide more granular details on their past performance and any compliance issues.

How does the firm fixed-price contract type impact the risk and potential value for the government?

A firm fixed-price (FFP) contract type means the contractor, Management & Training Corporation, is obligated to perform the work for a predetermined price, regardless of their actual costs. This structure shifts the primary cost risk from the government to the contractor. If MTC's operational costs exceed the contract price, their profit margin will decrease, or they may incur a loss. Conversely, if they manage operations efficiently and keep costs below the target, their profit will be higher. For the government, an FFP contract provides cost certainty, making budgeting more predictable. It incentivizes the contractor to be efficient and control costs. The value for the government is maximized when the contractor delivers the required services effectively within the fixed price, avoiding cost overruns that would typically be borne by the government in other contract types.

What are the key performance indicators (KPIs) typically used to evaluate Job Corps center performance, and how might they apply here?

Key performance indicators for Job Corps centers typically revolve around student outcomes and operational efficiency. Common KPIs include: 1) Placement Rates: The percentage of graduates who secure employment in their trained field or enroll in further education. 2) Retention Rates: The percentage of students who remain enrolled and complete their training programs. 3) Academic Achievement: Improvement in basic education and GED attainment. 4) Earnings Growth: The increase in wages earned by graduates post-program. 5) Safety and Security: Maintaining a safe environment for students and staff. 6) Compliance: Adherence to all federal regulations and program standards. For this contract, the Department of Labor would monitor MTC's performance against these and other specific metrics outlined in the contract to ensure the effective delivery of vocational training and support services.

What is the typical cost per student for Job Corps centers, and how does this contract's value align with that benchmark?

The cost per student for Job Corps centers can vary significantly based on location, the range of vocational programs offered, and the intensity of support services provided. Historically, the average cost per student has been estimated to be in the range of $20,000 to $30,000 per year, though this figure can be higher for comprehensive centers. With a contract value of $82.6 million over approximately five years (roughly $16.5 million per year), and assuming the Tongue Point center serves several hundred students, the per-student cost would need to be calculated based on its enrollment capacity. If the center serves, for example, 600 students annually, the annual cost per student would be around $27,500 ($16.5M / 600). This falls within the typical benchmark range, suggesting the contract value is aligned with established program costs, assuming the enrollment numbers are consistent with this scale.

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: FIRM FIXED PRICE (J)

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: $118,114,678

Exercised Options: $118,114,678

Current Obligation: $82,587,738

Actual Outlays: $19,317,025

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline