Labor Department's $47.4M Job Corps contract awarded to Management & Training Corporation without competition

Contract Overview

Contract Amount: $47,398,152 ($47.4M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2015-09-30

End Date: 2017-06-30

Contract Duration: 639 days

Daily Burn Rate: $74.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLEARFIELD JOB CORPS CENTER SHORT TERM (BRIDGE) CONTRACT AAPP 7209 IGF::OT::IGF

Place of Performance

Location: CLEARFIELD, DAVIS County, UTAH, 84016

State: Utah Government Spending

Plain-Language Summary

Department of Labor obligated $47.4 million to MANAGEMENT & TRAINING CORPORATION for work described as: CLEARFIELD JOB CORPS CENTER SHORT TERM (BRIDGE) CONTRACT AAPP 7209 IGF::OT::IGF Key points: 1. The contract's value of $47.4 million over approximately two years suggests a significant investment in vocational training services. 2. Awarded on a firm-fixed-price basis, the contract structure aims to provide cost certainty for the government. 3. The absence of competition raises questions about potential overpayment and the exploration of alternative, potentially more cost-effective solutions. 4. The contract's duration of 639 days (approx. 21 months) indicates a medium-term commitment to the service provider. 5. The specific North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The contract was awarded to a single entity, Management & Training Corporation, highlighting a lack of broader market engagement for this specific requirement.

Value Assessment

Rating: questionable

The contract's total value of $47.4 million for a period of roughly 21 months equates to an average annual value of approximately $26.9 million. Without comparable contract data or detailed service breakdowns, it is difficult to definitively benchmark the value for money. However, the lack of competition suggests that the government may not have secured the most competitive pricing available in the market. Further analysis would require understanding the specific services provided and comparing them to similar training programs or contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the Department of Labor did not solicit bids from multiple potential contractors. The reasons for a sole-source award are typically due to unique capabilities, urgent needs, or a lack of available sources. In this case, the absence of competition limits the government's ability to leverage market forces to drive down costs and ensure the best possible value.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without exploring other providers, it's uncertain if a more cost-effective solution could have been identified.

Public Impact

The primary beneficiaries of this contract are likely students enrolled in the Job Corps program at the Clearfield Job Corps Center, receiving vocational training and support services. The services delivered include short-term training and potentially bridge programs designed to prepare individuals for employment. The geographic impact is concentrated in Utah (UT), specifically serving the Clearfield area. The contract supports the workforce development ecosystem by providing training that can lead to improved employment outcomes for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit innovation by not engaging with a broader market.
Performance metrics and outcomes for this specific contract are not detailed, making it hard to assess effectiveness.
The contract's bridge nature suggests it might be a temporary solution, raising questions about long-term program stability.

Positive Signals

The contract addresses a specific need for vocational training through the Job Corps program.
The firm-fixed-price structure provides budget predictability for the government.
The award to Management & Training Corporation suggests they possess the necessary qualifications to operate the center.

Sector Analysis

The contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant government initiative aimed at workforce development. Comparable spending benchmarks would involve analyzing other federal contracts for similar training programs, considering factors like student capacity, program duration, and the specific trades taught. The market for educational and training services is diverse, with various providers ranging from large corporations to smaller non-profits.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Management & Training Corporation, is likely a large entity. The absence of a small business set-aside means that opportunities for small businesses to participate in delivering these services through subcontracting are not mandated by this specific contract award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Inspector General and relevant program offices. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, although detailed performance data may not always be publicly accessible. The Inspector General's office would be responsible for investigating any potential fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Vocational Training Initiatives
Department of Labor Training Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for uncompetitive pricing
Limited transparency on specific services and outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $47.4 million to MANAGEMENT & TRAINING CORPORATION. CLEARFIELD JOB CORPS CENTER SHORT TERM (BRIDGE) CONTRACT AAPP 7209 IGF::OT::IGF

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 $47.4 million.

What is the period of performance?

Start: 2015-09-30. End: 2017-06-30.

What specific vocational training programs and services were included under this $47.4 million contract?

The contract, identified as 'CLEARFIELD JOB CORPS CENTER SHORT TERM (BRIDGE) CONTRACT AAPP 7209', was awarded to Management & Training Corporation by the Department of Labor. While the total award was $47,398,152, the specific details of the vocational training programs and services are not explicitly itemized in the provided data. However, the designation 'Job Corps Center' and the NAICS code '611519' (Other Technical and Trade Schools) strongly suggest that the contract covered a range of services aimed at providing technical and vocational skills training to eligible youth. This likely included classroom instruction, hands-on skills development in various trades, career counseling, job placement assistance, and potentially support services such as housing or transportation, depending on the Job Corps center's operational model. The 'Short Term (Bridge)' designation implies a focus on shorter training durations or transitional programs designed to quickly equip participants with employable skills or prepare them for further education or apprenticeships.

How does the $47.4 million contract value compare to other Job Corps center contracts?

Benchmarking the $47.4 million contract value requires comparing it to similar Job Corps center contracts, considering factors like duration, student capacity, and the scope of services. The provided data indicates this contract lasted approximately 21 months (639 days). This suggests an average annual value of roughly $26.9 million. Job Corps centers vary significantly in size and the services they offer, impacting their operational costs. Larger centers with higher student enrollment and a wider array of vocational programs typically command higher contract values. Without access to a comprehensive database of all Job Corps center contracts, including their specific performance periods and service scopes, a precise comparison is challenging. However, $47.4 million over less than two years represents a substantial investment, and its relative value would depend heavily on the scale and intensity of the training provided at the Clearfield center compared to others nationwide.

What are the potential risks associated with awarding a $47.4 million contract on a sole-source basis?

Awarding a contract of this magnitude ($47.4 million) on a sole-source basis carries several potential risks. Firstly, the absence of competition means the government likely did not explore the full range of available providers, potentially missing out on more innovative or cost-effective solutions. This lack of market vetting can lead to paying a premium for services. Secondly, without competitive pressure, the incumbent contractor may have less incentive to optimize efficiency or offer the best possible value over the contract's life. Thirdly, sole-source awards can sometimes indicate a lack of adequate planning or a failure to identify potential sources early enough, which can be a programmatic risk. Finally, it raises concerns about transparency and fairness in the procurement process, potentially leading to perceptions of favoritism or missed opportunities for other qualified entities.

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

Management & Training Corporation (MTC) is a significant federal contractor, particularly known for its extensive involvement in operating Job Corps centers and correctional facilities. While the provided data focuses on a specific contract, MTC has a long history of managing such programs for various government agencies, including the Department of Labor. Their track record generally involves operating centers, providing training, and managing student populations. Performance reviews and contract histories for MTC would typically be available through federal procurement databases and agency performance management systems. Historically, MTC has been one of the primary private operators of Job Corps centers, indicating a substantial level of experience and established relationships with the Department of Labor. However, like any large contractor, their performance may vary across different contracts and locations, and specific evaluations would be necessary for a comprehensive assessment.

How effective has the Job Corps program been historically in improving employment outcomes for participants, and how does this contract contribute?

The Job Corps program, in general, has a stated mission to help young people from disadvantaged backgrounds obtain competitive academic, vocational, and social skills needed to secure quality full-time employment and become successful independent citizens. Historically, evaluations of the Job Corps program have shown mixed results, with some studies indicating positive impacts on earnings and employment rates for participants compared to non-participants, while others suggest more modest or variable outcomes depending on the cohort and specific center performance. This specific contract for the Clearfield Job Corps Center contributes to the broader program's effectiveness by providing the necessary funding and operational support for training services in Utah. The success of this particular contract would be measured by its ability to deliver quality training, achieve high completion rates, and ultimately lead to successful employment or further education for its participants, aligning with the overall goals of the Job Corps initiative.

What was the total federal spending on vocational training and Job Corps centers in the fiscal years leading up to and during this contract period?

Determining the precise total federal spending on vocational training and Job Corps centers in the fiscal years leading up to and during this contract period (2015-2017) requires accessing historical federal budget data and contract databases. The Department of Labor is the primary agency responsible for the Job Corps program. Annual appropriations for the Job Corps program fluctuate based on congressional budgets. For example, in FY2015, the Job Corps program received approximately $1.6 billion in funding. This figure generally covers the operation of numerous Job Corps centers nationwide, including staffing, facilities, training materials, and student support services. The $47.4 million awarded to Management & Training Corporation for the Clearfield center represents a portion of this larger federal investment in workforce development through the Job Corps initiative. Comprehensive historical spending data would detail appropriations and obligations across all relevant federal agencies and programs.

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: 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: $47,398,152

Exercised Options: $47,398,152

Current Obligation: $47,398,152

Actual Outlays: $52,291

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline