Department of Labor awards $61.9M Job Corps contract to ODLE Management Group for youth vocational training

Contract Overview

Contract Amount: $61,912,651 ($61.9M)

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

Awarding Agency: Department of Labor

Start Date: 2015-10-27

End Date: 2021-03-31

Contract Duration: 1,982 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT AWARD.

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90810

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $61.9 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT AWARD. Key points: 1. Contract aims to provide vocational training for youth aged 16-24. 2. This represents the initial award for this specific service. 3. The contract utilizes a Firm Fixed Price (FFP) structure, indicating predictable costs. 4. Competition was full and open after exclusion of sources, suggesting a robust bidding process. 5. The contract duration is substantial, spanning 1982 days. 6. The award is managed by the Office of the Assistant Secretary for Administration and Management. 7. The North American Industry Classification System (NAICS) code is 611519, covering Other Technical and Trade Schools.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison to similar vocational training programs. The initial award amount of $61.9 million over approximately 5.4 years suggests a significant investment in youth development. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the FFP contract type provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after the exclusion of sources. This indicates that multiple bidders were likely considered, and the selection process aimed for broad participation. The presence of 5 bids suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs and encouraging innovation among contractors vying for the award.

Public Impact

Young adults aged 16-24 seeking vocational training and career development. Delivery of comprehensive vocational training services. The contract is associated with California (SN: CALIFORNIA), suggesting a geographic focus for service delivery. Potential positive impact on the workforce by equipping young individuals with job skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long, potentially leading to contractor complacency if not managed effectively.
Initial award without historical performance data requires close monitoring.
Scope of services needs clear definition to ensure alignment with Job Corps goals.

Positive Signals

Full and open competition suggests a fair and transparent procurement process.
Firm Fixed Price contract type offers cost predictability.
The program targets a critical demographic for workforce development.

Sector Analysis

This contract falls within the Education and Training sector, specifically under 'Other Technical and Trade Schools' (NAICS 611519). The Job Corps program is a significant federal initiative aimed at workforce development for disadvantaged youth. Comparable spending benchmarks would involve analyzing other large-scale vocational training contracts awarded by the Department of Labor or other agencies focused on education and employment services.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures would be defined in the contract terms and conditions, with performance reviews and potential audits serving as key mechanisms. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
YouthBuild Program
Federal Job Training Programs

Risk Flags

Contract duration
Initial award without historical performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $61.9 million to ODLE MANAGEMENT GROUP, L.L.C.. IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT AWARD.

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 $61.9 million.

What is the period of performance?

Start: 2015-10-27. End: 2021-03-31.

What is the historical spending pattern for the Job Corps program under the Department of Labor?

Historical spending for the Job Corps program has been substantial, reflecting its long-standing role in youth workforce development. While this specific contract is an initial award, the Job Corps program itself has received significant federal funding over many years. Annual appropriations for Job Corps have historically ranged in the hundreds of millions of dollars, supporting numerous training centers and contracts across the nation. Analyzing past budgets and contract awards for similar services would provide context for the $61.9 million awarded here. Factors influencing historical spending include program expansion or contraction, changes in federal policy, and the number of participants served.

How does the per-participant cost of this Job Corps contract compare to national averages?

Determining the exact per-participant cost requires knowing the total number of participants served under this contract and the total obligated amount. The contract value is $61.9 million, and the duration is approximately 1982 days (about 5.4 years). If we assume a consistent number of participants throughout the contract, we could estimate an annual cost. However, national averages for Job Corps per-participant costs can vary significantly based on location, training specialization, and support services provided. Generally, comprehensive vocational training programs like Job Corps can have per-participant costs ranging from $15,000 to $30,000 annually, or even higher for intensive programs. A precise comparison would necessitate detailed program data not available in the provided summary.

What are the key performance indicators (KPIs) used to evaluate the success of this Job Corps contract?

Key performance indicators for Job Corps contracts typically focus on participant outcomes and program efficiency. Common KPIs include: completion rates (percentage of participants who finish their training program), placement rates (percentage of graduates who secure employment in their trained field), wage progression (average earnings of placed graduates over time), and credential attainment (number of participants earning industry-recognized certifications or diplomas). Additionally, metrics related to participant satisfaction, retention rates, and the cost-effectiveness of training delivery may be monitored. The specific KPIs for this ODLE Management Group contract would be detailed within the contract's Statement of Work (SOW) and performance work statement (PWS).

What is the track record of ODLE Management Group, L.L.C. in managing federal contracts, particularly in education or workforce development?

Assessing the track record of ODLE Management Group, L.L.C. requires reviewing their past performance on federal contracts. Information on their prior awards, contract values, agencies served, and performance evaluations (if publicly available through sources like the Federal Procurement Data System - FPDS) would be crucial. Specifically, experience with large-scale vocational training programs, youth development initiatives, or similar educational service contracts would be highly relevant. A review of their contract history would help determine their capacity, reliability, and success in delivering services comparable to the Job Corps program. Without specific historical data, it's difficult to definitively assess their suitability for this significant award.

How does the competition level (5 bidders) for this contract typically influence pricing and service quality?

A competition level of 5 bidders for a federal contract like this Job Corps award generally suggests a healthy degree of market interest and a reasonably competitive environment. With multiple firms vying for the contract, there is increased pressure on each bidder to offer competitive pricing and demonstrate superior service capabilities to win the award. This typically leads to better price discovery, meaning the government is more likely to secure a fair market price. Furthermore, competition can drive innovation and encourage higher service quality as contractors seek to differentiate themselves. However, the optimal number of bidders can vary depending on the complexity and size of the contract; for very large or specialized contracts, fewer bidders might still represent robust competition.

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: DOLJ14SA00008

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Eckerd Youth Alternatives, Inc.

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

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

Financial Breakdown

Contract Ceiling: $75,596,275

Exercised Options: $75,596,275

Current Obligation: $61,912,651

Actual Outlays: $20,354,304

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline