Department of Labor's $23.3M Contract with RES-CARE, INC for Technical Schools Lacks Competition

Contract Overview

Contract Amount: $23,370,871 ($23.4M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2016-01-01

End Date: 2017-07-31

Contract Duration: 577 days

Daily Burn Rate: $40.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF GUTHRIE BRIDGE CONTRACT

Place of Performance

Location: GUTHRIE, LOGAN County, OKLAHOMA, 73044

State: Oklahoma Government Spending

Plain-Language Summary

Department of Labor obligated $23.4 million to RES-CARE, INC for work described as: IGF::OT::IGF GUTHRIE BRIDGE CONTRACT Key points: 1. Contract awarded to RES-CARE, INC for $23.3M. 2. Sole-source award raises concerns about price discovery and value. 3. Lack of competition limits potential cost savings for taxpayers. 4. Sector context: Technical and trade schools are vital for workforce development.

Value Assessment

Rating: questionable

The contract value of $23.3M for technical and trade school services is significant. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar services procured through open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially leading to higher costs and reduced innovation as there is no market pressure to offer the best price or service.

Taxpayer Impact: The lack of competition means taxpayers may be paying more than necessary for these services, as there was no opportunity to leverage market forces for cost savings.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency in how the contract price was determined. Potential for reduced quality or scope if vendor faces no competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Contract supports employment and training initiatives

Sector Analysis

The Department of Labor's contract with RES-CARE, INC falls within the 'Other Technical and Trade Schools' category. Spending in this sector is crucial for workforce development, but competitive procurement is essential to ensure efficient use of public funds.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for sole-source awards. Robust oversight is needed to ensure competitive processes are followed whenever possible.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Sole-source award lacks transparency.
Potential for inflated costs due to no competition.
Limited opportunity for small business participation.
Questionable value for taxpayer money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.4 million to RES-CARE, INC. IGF::OT::IGF GUTHRIE BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is RES-CARE, INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2016-01-01. End: 2017-07-31.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available, or in cases of urgent need. A thorough review of the contract file would be necessary to ascertain the official reason.

How does the cost of this contract compare to similar services procured competitively?

Without competitive benchmarks, it is impossible to definitively state how this contract's cost compares. The absence of competition means there's no direct market comparison to assess if RES-CARE, INC's pricing is optimal or inflated. Further market research or analysis of comparable contracts would be required.

What mechanisms are in place to ensure the effectiveness and quality of services provided under this sole-source contract?

While the contract is sole-source, the Department of Labor should have performance standards and monitoring mechanisms in place to ensure RES-CARE, INC delivers the agreed-upon services effectively. Regular performance reviews and quality checks are crucial to hold the contractor accountable despite the lack of competition.

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

Solicitation ID: DOL-ETA-16-N-00012

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carestream Health, Inc. (UEI: 244882650)

Address: 9901 LINN STATION RD, LOUISVILLE, KY, 40223

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,156,786

Exercised Options: $27,156,786

Current Obligation: $23,370,871

Actual Outlays: $1,195,852

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline