Labor Dept. awards $47.7M to Career Systems Development Corp. for technical training over 7 years

Contract Overview

Contract Amount: $47,725,605 ($47.7M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2016-09-26

End Date: 2023-01-06

Contract Duration: 2,293 days

Daily Burn Rate: $20.8K/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 LORING JCC

Place of Performance

Location: LIMESTONE, AROOSTOOK County, MAINE, 04750

State: Maine Government Spending

Plain-Language Summary

Department of Labor obligated $47.7 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: IGF::OT::IGF LORING JCC Key points: 1. Significant contract value ($47.7M) for technical and trade school services. 2. Career Systems Development Corporation is the sole awardee. 3. Contract duration is substantial (2293 days). 4. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract value of $47.7M over approximately 7 years suggests a significant investment in training services. Benchmarking against similar technical and trade school contracts would be necessary to fully assess value, but the duration and cost indicate a substantial program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data does not specify the number of bids received or the pricing strategies employed by competitors, making it difficult to assess the effectiveness of price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for vocational training programs. The effectiveness and efficiency of these programs in achieving their stated goals will determine the ultimate value for taxpayers.

Public Impact

Provides essential technical and trade skills training to individuals. Supports workforce development and potentially reduces unemployment. The long-term nature of the contract suggests a sustained need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can incentivize contractor to increase costs.
Long contract duration may not adapt to changing market needs.
Lack of specific performance metrics makes it hard to gauge effectiveness.

Positive Signals

Full and open competition suggests potential for competitive pricing.
Contract addresses a clear need for technical training.
Multiple contract modifications (4) indicate active program management.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, specifically NAICS code 611519. Spending in this sector is driven by government needs for workforce development and specialized training. Benchmarks would depend on the specific skills being taught and the scale of the program.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on whether small businesses were subcontracted for any portion of this work.

Oversight & Accountability

The contract was awarded by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Oversight would involve monitoring program performance, cost controls, and adherence to contract terms to ensure effective use of funds.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPIF contract type.
Long contract duration may lead to outdated training or services.
Lack of specific performance metrics makes effectiveness difficult to assess.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $47.7 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. IGF::OT::IGF LORING JCC

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 $47.7 million.

What is the period of performance?

Start: 2016-09-26. End: 2023-01-06.

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

The contract falls under NAICS code 611519 (Other Technical and Trade Schools). While the specific skills are not detailed, this code generally covers institutions providing vocational and technical training in various fields. Alignment with labor market demands would require analyzing the curriculum and graduate placement rates, which are not provided in the data. This information is crucial for assessing the long-term value and effectiveness of the training.

How effectively has the Cost Plus Incentive Fee structure managed costs and incentivized performance given the contract's duration and value?

The Cost Plus Incentive Fee (CPIF) structure allows for contractor reimbursement of allowable costs plus a predetermined fee, with adjustments based on performance against targets. For a contract valued at $47.7M over 7 years, effective management of CPIF is critical. Without specific performance data and cost variance reports, it's difficult to assess if costs were controlled and if the incentive structure successfully drove desired outcomes. Regular audits and performance reviews are essential for CPIF contracts.

What is the demonstrated success rate of participants in securing employment or advancing their careers after completing training under this contract?

The ultimate effectiveness of this contract hinges on the success of the training participants. Key metrics would include job placement rates, salary levels achieved post-training, and career advancement. The provided data lacks information on these outcome measures. Gathering data on participant success is vital for determining the return on investment for taxpayer funds and the overall value delivered by Career Systems Development Corporation.

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-00010

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $85,475,794

Exercised Options: $85,293,987

Current Obligation: $47,725,605

Actual Outlays: $23,543,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline