Department of Labor's Job Corps contract for Springdale Center awarded to Chugach Education Services for over $35.6 million

Contract Overview

Contract Amount: $35,677,663 ($35.7M)

Contractor: Chugach Education Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2015-03-31

End Date: 2020-09-30

Contract Duration: 2,010 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

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 SPRINGDALE JOB CORPS CENTER.

Place of Performance

Location: TROUTDALE, MULTNOMAH County, OREGON, 97060

State: Oregon Government Spending

Plain-Language Summary

Department of Labor obligated $35.7 million to CHUGACH EDUCATION SERVICES, INC. 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 SPRINGDALE JOB CORPS CENTER. Key points: 1. The contract supports vocational training for youth, a critical service for workforce development. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The use of a Cost Plus Incentive Fee (CPIF) contract type indicates a focus on performance-based outcomes. 4. The duration of the contract (over 5 years) suggests a significant commitment to the program's continuity. 5. The contract's value places it within a substantial range for educational and training services. 6. The geographic focus on Oregon highlights regional workforce needs being addressed.

Value Assessment

Rating: good

The contract's value of over $35.6 million for a 5-year period for operating a Job Corps center appears reasonable given the scope of services. Benchmarking against similar large-scale vocational training contracts would provide further context, but the CPIF structure suggests an effort to align costs with performance, potentially leading to better value.

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 a robust bidding process where multiple qualified vendors had the opportunity to compete. The presence of 3 bids suggests a healthy level of competition, which typically drives down prices and encourages innovation.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution for delivering essential youth vocational training services.

Public Impact

Young adults aged 16-24 in Oregon benefit from vocational training opportunities. The contract facilitates the operation of the Springdale Job Corps Center, providing essential services. The program aims to improve workforce readiness and employability for participants. Geographic impact is concentrated in Oregon, addressing local youth employment needs. Workforce implications include the creation of jobs for center staff and the development of skills for trainees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive fee targets are not met effectively.
Reliance on a single contractor for a significant period could lead to complacency if not managed closely.

Positive Signals

The CPIF contract structure incentivizes the contractor to achieve performance goals, potentially leading to higher quality service delivery.
Full and open competition suggests a strong market response and potential for best-value selection.
The long-term nature of the contract provides stability for program participants and staff.

Sector Analysis

This contract falls within the broader education and workforce development sector. The federal government invests significantly in job training programs like Job Corps to address youth unemployment and skill gaps. Comparable spending benchmarks would include other large federal grants or contracts for vocational training, educational services, and youth development programs. The market for such services is competitive, with a mix of non-profit organizations, educational institutions, and private companies vying for these contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Chugach Education Services engages them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often have subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Office of the Assistant Secretary for Administration and Management. The CPIF contract type inherently includes performance metrics that are monitored to determine incentive payments. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Youth Training Programs
Federal Vocational Education Contracts

Risk Flags

Potential for cost overruns inherent in CPIF contracts if not managed closely.
Reliance on a single provider for an extended period requires robust oversight.
Justification for 'exclusion of sources' needs to be clearly documented to ensure fair competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $35.7 million to CHUGACH EDUCATION SERVICES, INC.. 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 SPRINGDALE JOB CORPS CENTER.

Who is the contractor on this award?

The obligated recipient is CHUGACH EDUCATION SERVICES, 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 $35.7 million.

What is the period of performance?

Start: 2015-03-31. End: 2020-09-30.

What is the historical spending pattern for the operation of the Springdale Job Corps Center?

The provided data indicates this is a new contract for the operation of the Springdale Job Corps Center, with a start date of March 31, 2015, and an end date of September 30, 2020. Therefore, there is no historical spending data available for this specific contract or center within the provided dataset. Future analysis would require data from subsequent contracts or operational periods to establish a spending trend for this location. However, the overall Job Corps program has a long history of federal funding, with annual appropriations fluctuating based on legislative priorities and economic conditions.

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

To accurately compare the per-student cost, we would need the total number of students served by the Springdale Job Corps Center under this contract and the total contract value. The provided data gives the total contract value ($35,677,663.45) but not the student enrollment numbers. Without this crucial information, a per-student cost calculation is impossible. Benchmarking against other Job Corps centers would require similar data (total contract value and student capacity/enrollment) for those centers to determine if the Springdale center's operational cost is in line with national averages or outliers.

What are the specific performance metrics tied to the incentive fee in this CPIF contract?

The provided data specifies the contract type as 'COST PLUS INCENTIVE FEE' (pt: "COST PLUS INCENTIVE FEE") but does not detail the specific performance metrics or targets that trigger the incentive fee. Typically, CPIF contracts outline key performance indicators (KPIs) related to student outcomes (e.g., graduation rates, job placement rates, starting wages), operational efficiency (e.g., cost control, facility maintenance), and program compliance. The contracting agency, the Department of Labor, would have established these metrics in the contract's statement of work and evaluation criteria. These metrics are crucial for assessing the contractor's effectiveness and ensuring taxpayer value.

What is Chugach Education Services, Inc.'s track record with federal contracts, particularly in education or job training?

Chugach Education Services, Inc. appears to be a subsidiary or affiliate of Chugach Alaska, LLC, a Native-owned corporation. Federal contract databases would need to be consulted for a comprehensive history. However, their involvement in operating a Job Corps center suggests prior experience and capability in managing large-scale educational and training programs. A deeper dive into their contract history would reveal the number and types of federal contracts awarded, their performance ratings on those contracts, and any past issues or successes. This information is vital for assessing their reliability and expertise in fulfilling the current contract.

What is the potential impact of the 'exclusion of sources' clause in the contract's competition type?

The contract type is listed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (ct: "FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES"). This phrasing can be somewhat contradictory. 'Full and open competition' implies all responsible sources are permitted to compete. However, 'after exclusion of sources' suggests that certain potential sources were deliberately excluded prior to the competition phase. This exclusion must be justified by the agency, often based on specific requirements, past performance, or unique capabilities. While the competition was open to all *remaining* responsible sources, the exclusion might limit the breadth of competition and potentially impact price discovery if the excluded sources were significant players in the market.

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

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Government Solutions, LLC

Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $46,763,655

Exercised Options: $46,763,655

Current Obligation: $35,677,663

Actual Outlays: $8,652,927

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $9,270,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline