Department of Labor awards $90.6M contract to ODLE MANAGEMENT GROUP for technical and trade schools, utilizing full and open competition

Contract Overview

Contract Amount: $90,589,034 ($90.6M)

Contractor: Odle Management Group, L.L.C.

Awarding Agency: Department of Labor

Start Date: 2016-05-01

End Date: 2021-05-31

Contract Duration: 1,856 days

Daily Burn Rate: $48.8K/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

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15206

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $90.6 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: IGF::CT::IGF Key points: 1. Contract Value: $90.6 million over 5 years. 2. Competition: Full and open competition after exclusion of sources. 3. Risk: Moderate risk due to cost-plus incentive fee structure. 4. Sector: Education and training services.

Value Assessment

Rating: good

The contract's cost-plus incentive fee structure allows for shared savings, which can be beneficial if managed effectively. Benchmarking against similar contracts for technical and trade school services would provide further insight into its 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, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair pricing, potentially leading to efficient use of taxpayer funds for educational services.

Public Impact

Provides essential technical and trade school services to the Department of Labor. Supports workforce development and training initiatives. Contract duration of over 5 years indicates a long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus incentive fee structure requires careful monitoring to ensure cost control.
Potential for scope creep given the nature of training services.

Positive Signals

Full and open competition promotes competitive pricing.
Long contract duration suggests a stable and ongoing requirement.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on educational and training services. Benchmarks for similar contracts can vary widely based on the specific trades and duration of training.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract type (cost-plus incentive fee) necessitates robust oversight to ensure performance objectives are met and costs are controlled effectively. The 'PA' status suggests it's a prime contract, requiring oversight of the prime contractor.

Related Government Programs

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

Risk Flags

Cost-plus contracts can lead to cost overruns if not closely monitored.
The 'exclusion of sources' in the competition type warrants understanding the rationale to ensure fairness.
Lack of specific performance metrics in the provided data makes assessing effectiveness challenging.
Potential for contractor lock-in due to the long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $90.6 million to ODLE MANAGEMENT GROUP, L.L.C.. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is ODLE MANAGEMENT GROUP, L.L.C..

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 $90.6 million.

What is the period of performance?

Start: 2016-05-01. End: 2021-05-31.

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

The contract number '611519' and description 'Other Technical and Trade Schools' suggest a broad range of vocational training. A detailed review of the contract's statement of work would be necessary to identify the specific skills. Alignment with labor market demands would require cross-referencing the training curriculum with current industry needs and projected job growth in relevant sectors.

How effectively has the cost-plus incentive fee structure managed costs and incentivized performance for ODLE MANAGEMENT GROUP?

Assessing the effectiveness of the cost-plus incentive fee requires analyzing the contractor's performance against established metrics and comparing actual costs to target costs. Data on cost savings achieved or penalties incurred would be crucial. Without this granular performance data, it's difficult to definitively state how well the incentive structure has worked.

What is the long-term impact of these training services on the Department of Labor's workforce and the individuals trained?

The long-term impact can be measured by tracking the employment rates and career progression of individuals who complete the training programs. For the Department of Labor, the impact relates to improved employee skills, retention, and overall agency efficiency. Evaluating this requires post-training follow-up and analysis of workforce metrics.

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

Solicitation ID: DOLETA14R00028

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Eckerd Youth Alternatives, Inc.

Address: 9937 E BELL RD STE 110, SCOTTSDALE, AZ, 85260

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $93,179,994

Exercised Options: $93,179,994

Current Obligation: $90,589,034

Actual Outlays: $36,483,102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline