Labor Department's $23.3M technical training contract awarded to Career Systems Development Corporation without competition

Contract Overview

Contract Amount: $23,350,399 ($23.4M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2016-06-29

End Date: 2018-12-31

Contract Duration: 915 days

Daily Burn Rate: $25.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF PENOBSCOT BRIDGE CONTRACT

Place of Performance

Location: BANGOR, PENOBSCOT County, MAINE, 04401

State: Maine Government Spending

Plain-Language Summary

Department of Labor obligated $23.4 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: IGF::OT::IGF PENOBSCOT BRIDGE CONTRACT Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price discovery and value for money. 2. The duration of the contract (915 days) suggests a significant, ongoing need for the services provided. 3. The absence of competition limits the ability to benchmark pricing against market alternatives. 4. The contract's cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 5. The specific technical and trade school services (NAICS 611519) indicate a focus on workforce development or specialized training. 6. The contract's value of over $23 million warrants scrutiny regarding its necessity and effectiveness.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to assess if the $23.3 million price represents fair market value. The cost-plus-fixed-fee (CPFF) contract type, while offering flexibility, can lead to higher costs compared to fixed-price contracts if not managed diligently. Benchmarking against similar technical training contracts awarded competitively would be necessary to determine if the pricing is reasonable. The lack of competition means there's no direct market pressure to drive down costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor is capable of providing the required services, or in specific emergency situations. The lack of competition means that potential alternative vendors were not considered, and the government did not benefit from a bidding process that could have led to lower prices or innovative solutions.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, the government had less leverage to negotiate the best possible price.

Public Impact

Individuals seeking specialized technical and trade skills training may benefit from the services delivered under this contract. The contract supports workforce development initiatives, potentially leading to improved employment outcomes for participants. The geographic impact is focused on Maine (ST: ME, SN: MAINE), suggesting a localized training program. The contract likely impacts the workforce by providing training that could lead to new job opportunities or skill enhancements for individuals in Maine.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value.
Cost-plus-fixed-fee structure requires robust oversight to prevent cost overruns.
Lack of transparency in the justification for sole-source award.
Limited data available to assess the specific outcomes and effectiveness of the training provided.

Positive Signals

Addresses a specific need for technical and trade school services.
Contract duration suggests a sustained effort in workforce development.
Awarded by the Department of Labor, indicating a focus on employment and training programs.

Sector Analysis

The contract falls within the 'Other Technical and Trade Schools' sector (NAICS 611519), which is part of the broader education and training services industry. This sector includes institutions that provide vocational and technical training. The market size for such services can be substantial, driven by the demand for skilled labor across various industries. This specific contract, valued at over $23 million, represents a significant investment in workforce development within its geographic scope.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature of the award and the focus on specialized technical training may limit the direct involvement of small businesses as prime contractors. Further investigation would be needed to determine if any small business subcontracting was mandated or occurred.

Oversight & Accountability

Oversight for this contract would fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are crucial to ensure funds are used effectively and that the contractor meets performance objectives. The Inspector General's office within the Department of Labor would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Department of Labor Workforce Training Programs
Vocational Education Grants
Technical Skills Development Initiatives
Adult Education and Literacy Programs

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.4 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. IGF::OT::IGF PENOBSCOT BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $23.4 million.

What is the period of performance?

Start: 2016-06-29. End: 2018-12-31.

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

The provided data does not specify the exact technical and trade skills covered by the contract (NAICS 611519: Other Technical and Trade Schools). However, this classification generally includes institutions offering training in fields such as automotive repair, HVAC, welding, cosmetology, culinary arts, and various other vocational trades. To assess alignment with labor market demands in Maine, one would need to consult state labor statistics and industry reports to identify high-demand occupations and skill gaps. The Department of Labor's own research or reports from the Maine Department of Labor would be primary sources for this analysis. Without this specific information, it's presumed the training is intended to address identified workforce needs within the state.

What was the justification for awarding this contract on a sole-source basis, and were any alternative vendors considered?

The justification for a sole-source award typically stems from a determination that only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, or specific expertise. For this contract, the Department of Labor would have had to document the rationale for not competing the award. Standard procurement regulations require agencies to explore all reasonable avenues for competition before resorting to a sole-source award. Without access to the contract file or specific justification documents, it is impossible to definitively state the reasons or confirm if alternatives were considered and rejected. The absence of competition suggests that either no other vendors were identified as capable, or the agency determined competition was not practicable.

How does the cost-plus-fixed-fee (CPFF) structure of this contract potentially impact its overall cost compared to other contract types?

The Cost-Plus-Fixed-Fee (CPFF) contract type allows the contractor to recover all allowable costs incurred, plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is uncertainty in the cost of performance. While the fixed fee provides some predictability for the contractor's profit, the total cost to the government can fluctuate based on actual costs incurred. Compared to a firm-fixed-price contract, CPFF generally carries higher cost risk for the government, as cost overruns directly increase the total contract value. However, it can be advantageous when innovation or flexibility is paramount and risks are high. Effective oversight and cost controls are critical to managing the total expenditure under a CPFF contract.

What performance metrics or key performance indicators (KPIs) were established for Career Systems Development Corporation under this contract?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) established for Career Systems Development Corporation. For a contract of this nature, particularly one focused on technical and trade school services, typical KPIs might include student completion rates, job placement rates post-training, employer satisfaction with graduates' skills, adherence to curriculum standards, and timely delivery of training modules. The Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM) would be responsible for defining and monitoring these metrics as part of contract administration. The effectiveness of the contract hinges on the establishment and rigorous tracking of relevant performance indicators.

What is the historical spending pattern for similar technical and trade school services by the Department of Labor, and how does this contract compare?

Analyzing historical spending patterns for similar services by the Department of Labor would require access to broader contract databases and spending reports. This specific contract, valued at $23.35 million over its duration, appears to be a significant investment. Without comparative data on previous sole-source or competitively awarded contracts for technical and trade education within the DOL, it's difficult to definitively state how it compares. However, the substantial value suggests a large-scale or long-term training initiative. A comprehensive review would involve searching for contracts with similar NAICS codes (611519) awarded by DOL or other agencies to gauge typical contract values, durations, and competition levels for such services.

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 FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $32,816,176

Exercised Options: $32,816,176

Current Obligation: $23,350,399

Actual Outlays: $6,177,861

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline