Department of Labor's $23.8M Job Corps contract awarded to Fluor Federal Solutions shows fair value with moderate competition

Contract Overview

Contract Amount: $23,759,433 ($23.8M)

Contractor: Fluor Federal Solutions, LLC

Awarding Agency: Department of Labor

Start Date: 2016-04-01

End Date: 2019-12-06

Contract Duration: 1,344 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF MISSISSIPPI JOB CORPS CENTER OPERATIONS CONTRACT

Place of Performance

Location: CRYSTAL SPRINGS, COPIAH County, MISSISSIPPI, 39059

State: Mississippi Government Spending

Plain-Language Summary

Department of Labor obligated $23.8 million to FLUOR FEDERAL SOLUTIONS, LLC for work described as: IGF::OT::IGF MISSISSIPPI JOB CORPS CENTER OPERATIONS CONTRACT Key points: 1. The contract's value appears reasonable when benchmarked against similar service contracts. 2. Competition was robust, with 5 bidders vying for the contract, suggesting a healthy market. 3. The contract type (Cost Plus Incentive Fee) carries inherent risk of cost overruns. 4. Performance context is critical for Job Corps centers, impacting workforce development. 5. This contract falls within the broader 'Other Technical and Trade Schools' sector. 6. The duration of the contract (1344 days) indicates a significant, long-term commitment. 7. No small business set-aside was utilized, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract's total award amount of $23.8 million over its period of performance suggests a reasonable cost for operating a Job Corps center. Benchmarking against similar contracts for educational and vocational training services indicates that the pricing is within an acceptable range. While specific cost breakdowns are not provided, the overall value proposition appears sound given the scope of services typically delivered by Job Corps.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five distinct bidders submitting proposals. This level of competition is generally positive, indicating that multiple capable contractors were interested and able to compete. The presence of several bidders suggests that the government had a good opportunity to solicit competitive pricing and select the best-value offer, likely leading to a more favorable outcome for taxpayers.

Taxpayer Impact: The full and open competition process for this contract likely resulted in a more competitive price than a sole-source or limited competition award. This benefits taxpayers by ensuring that federal funds are used efficiently and effectively.

Public Impact

The primary beneficiaries are students seeking vocational training and employment opportunities. Services delivered include academic instruction, career technical training, and job placement assistance. The geographic impact is focused on Mississippi, providing local workforce development. Workforce implications include employment for instructors, support staff, and administrative personnel at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can incentivize cost overruns if not carefully managed.
The long contract duration may lead to complacency if performance is not continuously monitored.
Dependence on a single contractor for operational continuity carries inherent risk.

Positive Signals

Full and open competition suggests a robust selection process and potential for value.
The award to Fluor Federal Solutions, a known entity, may indicate a track record of performance.
The contract aims to provide essential job training, a positive societal impact.

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 workforce development. Comparable spending benchmarks in this sector would involve other government contracts for operating educational facilities, career training programs, and workforce development services. The market for such services is competitive, with several large federal contractors capable of managing complex educational operations.

Small Business Impact

This contract was not set aside for small businesses, nor does the data indicate any specific subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this contract are likely limited to general subcontracting by the prime contractor, Fluor Federal Solutions, if they choose to engage them. The absence of a set-aside may limit direct opportunities for small businesses to compete for the prime contract itself.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers. Accountability measures would be embedded within the Cost Plus Incentive Fee structure, linking contractor performance to financial incentives. Transparency is generally facilitated through contract award databases and reporting requirements. While specific Inspector General jurisdiction for this particular contract isn't detailed, the Department of Labor's Office of Inspector General would likely have oversight authority over potential fraud, waste, and abuse.

Related Government Programs

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

Risk Flags

Cost Plus Incentive Fee contract type carries inherent cost overrun risk.
Long contract duration requires sustained performance monitoring.
No explicit small business subcontracting goals noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.8 million to FLUOR FEDERAL SOLUTIONS, LLC. IGF::OT::IGF MISSISSIPPI JOB CORPS CENTER OPERATIONS CONTRACT

Who is the contractor on this award?

The obligated recipient is FLUOR FEDERAL SOLUTIONS, LLC.

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 $23.8 million.

What is the period of performance?

Start: 2016-04-01. End: 2019-12-06.

What is Fluor Federal Solutions' track record with the Job Corps program or similar government contracts?

Fluor Federal Solutions has a history of managing large-scale government contracts, including those related to facility operations and support services. While specific details on their performance with the Job Corps program are not provided in this data snippet, their experience with similar complex service contracts suggests a capacity to manage such operations. A deeper dive into their past performance reviews, any past performance issues, and their success in meeting performance metrics on previous government contracts would be necessary for a comprehensive assessment of their track record. This would include examining any awards, penalties, or contract modifications related to their previous work.

How does the Cost Plus Incentive Fee (CPIF) structure impact the value for money in this contract?

The Cost Plus Incentive Fee (CPIF) contract structure aims to incentivize the contractor to control costs while achieving specific performance targets. In this case, Fluor Federal Solutions would be reimbursed for allowable costs plus a fee that is adjusted based on performance against pre-defined metrics. While this can lead to better value by encouraging efficiency, it also carries a risk of cost overruns if the incentive targets are not well-defined or if the baseline cost estimates are inaccurate. The 'value for money' is thus contingent on the effectiveness of the incentive structure and the rigor of performance monitoring by the Department of Labor to ensure that both cost control and quality of service are achieved.

What are the primary risks associated with operating a Job Corps center under this contract?

The primary risks associated with operating a Job Corps center under this contract include ensuring consistent student enrollment and retention, maintaining high-quality academic and vocational training, achieving successful job placement rates for graduates, and managing operational costs effectively. For the government, risks include potential cost overruns due to the CPIF structure, contractor performance failures leading to service disruptions, and ensuring compliance with all federal regulations and program requirements. The long duration of the contract also introduces risks related to potential changes in program needs or economic conditions that could impact the effectiveness of the training provided.

How does this contract's spending compare to historical spending on Job Corps center operations?

Without historical spending data for this specific Job Corps center or comparable centers, a direct comparison is difficult. However, the award amount of $23.8 million over approximately 3.5 years (from April 2016 to December 2019) suggests an average annual expenditure of roughly $6.8 million. To assess historical trends, one would need to examine prior contracts for this center or similar centers, considering inflation and changes in program scope or student populations over time. Analyzing year-over-year spending patterns and the number of centers operated by the Department of Labor would provide a broader context for evaluating this contract's financial scale.

What are the potential implications of the 'Other Technical and Trade Schools' NAICS code for this contract?

The NAICS code 611519, 'Other Technical and Trade Schools,' indicates that the primary function of this contract is to provide vocational and technical education and training. This classification suggests that the services delivered are focused on equipping individuals with specific skills for employment in various trades and technical fields. For the Department of Labor, this code aligns with the mission of the Job Corps program to prepare young people for careers. It also implies that the contractor must meet certain educational standards and provide curriculum relevant to in-demand occupations, influencing performance metrics and reporting requirements.

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-15-R-00024

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

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

Financial Breakdown

Contract Ceiling: $47,978,142

Exercised Options: $26,137,481

Current Obligation: $23,759,433

Actual Outlays: $1,426,371

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline