DOL's $40.9M Technical Training Contract with Management & Training Corp. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $40,917,640 ($40.9M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2016-02-01

End Date: 2021-02-28

Contract Duration: 1,854 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF OPERATION OF HUBERT H. HUMPHREY OACTS

Place of Performance

Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55108

State: Minnesota Government Spending

Plain-Language Summary

Department of Labor obligated $40.9 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::OT::IGF OPERATION OF HUBERT H. HUMPHREY OACTS Key points: 1. The contract awarded to Management & Training Corporation for technical and trade schools services represents a significant investment in workforce development. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process that could lead to favorable pricing. 3. The contract's duration of over 1800 days indicates a long-term need for these services. 4. The 'Other Technical and Trade Schools' NAICS code points to a specialized service area within the broader education and training sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost savings but also requires careful monitoring to ensure value. Without specific performance data or comparable contracts, assessing the pricing effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for a broad range of bidders and can foster price discovery. However, the effectiveness of this competition in achieving optimal pricing depends on the number and quality of bids received.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value. The long-term nature of the contract suggests ongoing benefits for workforce development, potentially offsetting costs through improved employment outcomes.

Public Impact

Provides essential technical and trade school services, contributing to workforce development and potentially improving employment opportunities for participants. The contract's duration suggests a sustained commitment to training programs, impacting a significant number of individuals over its term. Awarded through a competitive process, the contract aims to deliver value for taxpayer dollars in the education and training sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the training provided.
CPIF contract type requires diligent oversight to ensure cost controls and prevent potential overruns.
The 'Other Technical and Trade Schools' category is broad; specific outcomes for the services rendered are not detailed.

Positive Signals

Awarded via full and open competition, indicating an effort to maximize value and competition.
The contract addresses a critical need for skilled labor through technical and trade education.
Long contract duration suggests a stable and potentially effective program.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on technical and trade schools. Spending in this area is often driven by government needs for workforce development, specialized training, and upskilling initiatives.

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 the extent of small business participation.

Oversight & Accountability

The contract's Cost Plus Incentive Fee structure necessitates robust oversight from the Department of Labor to monitor costs, track performance against incentive targets, and ensure accountability for program outcomes.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Lack of specific performance metrics.
CPIF contract type requires diligent oversight.
Broad NAICS code limits understanding of specific services.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $40.9 million to MANAGEMENT & TRAINING CORPORATION. IGF::OT::IGF OPERATION OF HUBERT H. HUMPHREY OACTS

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 $40.9 million.

What is the period of performance?

Start: 2016-02-01. End: 2021-02-28.

What specific technical and trade skills are being imparted under this contract, and how do they align with current labor market demands?

The provided data categorizes the services under 'Other Technical and Trade Schools' (NAICS 611519), which is a broad classification. To assess alignment with labor market demands, a detailed breakdown of the curriculum, training programs, and specific skills taught would be required. This information is crucial for understanding the contract's effectiveness in preparing individuals for in-demand jobs and ensuring taxpayer investment yields relevant workforce outcomes.

How effectively did the 'full and open competition' process ensure competitive pricing, given the contract's significant value and long duration?

While 'full and open competition' is a positive indicator for price discovery, its effectiveness hinges on the number and quality of bids received. Without access to bid data, it's difficult to ascertain if the competition truly drove down costs or if the chosen contractor offered the most advantageous proposal. The long duration and CPIF structure also warrant scrutiny to ensure sustained cost-effectiveness throughout the contract's life.

What are the measurable outcomes and performance metrics associated with this contract to evaluate its effectiveness in workforce development?

The current data lacks specific performance metrics or outcome measures for this contract. Evaluating effectiveness requires data on participant completion rates, job placement success, wage increases post-training, and employer satisfaction. Without these quantifiable results, it's challenging to determine the true return on the $40.9 million investment and whether the training programs are successfully meeting their workforce development objectives.

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

Solicitation ID: DOL-ETA-14-R-00026

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $71,078,637

Exercised Options: $58,148,732

Current Obligation: $40,917,640

Actual Outlays: $9,710,791

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline