Department of Labor awards $30.19M contract to RES-CARE, INC for technical and trade schools

Contract Overview

Contract Amount: $30,190,347 ($30.2M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2016-06-29

End Date: 2018-06-30

Contract Duration: 731 days

Daily Burn Rate: $41.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF EDISON MOD 0 AAPP 7155 BRIDGE

Place of Performance

Location: EDISON, MIDDLESEX County, NEW JERSEY, 08817

State: New Jersey Government Spending

Plain-Language Summary

Department of Labor obligated $30.2 million to RES-CARE, INC for work described as: IGF::OT::IGF EDISON MOD 0 AAPP 7155 BRIDGE Key points: 1. Contract awarded to RES-CARE, INC for "Other Technical and Trade Schools" services. 2. The contract value is $30,190,347 over 731 days. 3. This was a 'NOT COMPETED' award, raising questions about competition. 4. The sector is primarily educational services, specifically technical and trade schools.

Value Assessment

Rating: questionable

The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. Without benchmark data for similar services, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these educational services.

Public Impact

Potential impact on individuals seeking technical and trade education through government-funded programs. Concerns about the fairness and efficiency of awarding large contracts without competitive bidding. The effectiveness of the training provided by RES-CARE, INC is not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Incentive Fee contract type
No clear justification for sole-source award

Positive Signals

Awarded to a specific company for a defined service period.

Sector Analysis

The Department of Labor's spending in the education sector, particularly for technical and trade schools, aims to equip individuals with job-ready skills. Benchmarks for similar contracts are needed to assess cost-effectiveness.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or if this award impacted small business participation in the sector.

Oversight & Accountability

Oversight is crucial for CPIF contracts to ensure costs are controlled and performance objectives are met. The 'NOT COMPETED' status warrants scrutiny from oversight bodies.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for cost overruns (CPIF)
Absence of performance metrics
Unclear justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $30.2 million to RES-CARE, INC. IGF::OT::IGF EDISON MOD 0 AAPP 7155 BRIDGE

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 $30.2 million.

What is the period of performance?

Start: 2016-06-29. End: 2018-06-30.

What was the justification for not competing this contract, and were alternative solutions considered?

The provided data states the contract was 'NOT COMPETED,' implying a sole-source award. A thorough review would require access to the contract file to understand the specific justification, such as urgency, unique capabilities, or a lack of other responsible sources. Without this information, it's impossible to assess if alternatives were adequately explored or if this was the most cost-effective approach.

How does the per-unit cost of training or service delivery compare to industry benchmarks for similar technical and trade school programs?

The provided data does not include specific service delivery metrics or per-unit costs, making a direct comparison to industry benchmarks impossible. To assess value, one would need to analyze the specific services rendered, the number of individuals trained, and the outcomes achieved, then compare these against established cost standards for similar educational programs.

What are the performance metrics and outcomes associated with this contract to ensure effectiveness and taxpayer value?

The data provided does not detail the performance metrics or expected outcomes for this contract. To evaluate effectiveness, an analysis of RES-CARE, INC's performance against contract requirements, including student completion rates, job placement statistics, and skill acquisition, would be necessary. Without this, it's difficult to determine if the $30.19 million investment yielded satisfactory results for the taxpayer.

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: COST PLUS INCENTIVE FEE (V)

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: $45,767,421

Exercised Options: $45,767,421

Current Obligation: $30,190,347

Actual Outlays: $1,484,696

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline