Department of Labor awards $27.3M contract for Job Corps center operations, highlighting vocational training for youth

Contract Overview

Contract Amount: $27,354,652 ($27.4M)

Contractor: Mcconnell Jones Lanier & Murphy LLP

Awarding Agency: Department of Labor

Start Date: 2015-11-25

End Date: 2017-11-30

Contract Duration: 736 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

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 FOR OPERATION OF THE SACRAMENTO JOB CORPS CENTER AND CAREER TRANSITION SERVICES.

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95832

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $27.4 million to MCCONNELL JONES LANIER & MURPHY LLP 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 FOR OPERATION OF THE SACRAMENTO JOB CORPS CENTER AND CAREER TRANSITION SERVICES. Key points: 1. The contract focuses on providing vocational training and career transition services, aiming to equip young individuals with job skills. 2. The award was made under full and open competition, suggesting a competitive bidding process that could lead to better pricing. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor and provides budget certainty. 4. The duration of the contract is 736 days, indicating a medium-term commitment for service delivery. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools, a niche sector. 6. The contract was awarded to McConnell Jones Lanier & Murphy LLP, a firm that will be responsible for the center's operations.

Value Assessment

Rating: fair

The contract value of $27.3 million over approximately two years for operating a Job Corps center appears to be within a reasonable range for such services. Benchmarking against similar contracts for vocational training centers is challenging without more specific data on the scope of services, student capacity, and geographic location. However, the firm fixed-price nature of the contract provides a clear cost structure. Further analysis would require comparing the cost per student or per training hour to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 6 bidders suggests a healthy level of competition for this service. A competitive process generally benefits the government by encouraging lower prices and higher quality services as contractors vie for the award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario. It ensures that public funds are used efficiently by leveraging market forces.

Public Impact

Youth aged 16-24 will benefit from vocational training and career services, enhancing their employability. The Sacramento Job Corps Center will be operated, providing a physical location for training and support. The services delivered aim to improve workforce development and provide pathways to stable employment for young adults. The geographic impact is focused on Sacramento, California, serving the local youth population. The contract has implications for the local workforce, potentially creating jobs for instructors, administrators, and support staff at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's fixed price does not adequately account for all operational expenses.
Risk of service quality degradation if contractor prioritizes cost-saving over training effectiveness.
Dependence on contractor's ability to recruit and retain qualified instructors and staff.
Challenges in ensuring consistent program outcomes across different student cohorts.

Positive Signals

Firm Fixed Price contract structure provides budget certainty for the government.
Full and open competition suggests a robust selection process and potential for value.
Focus on vocational training addresses a critical need for youth workforce development.
Contractor is responsible for the day-to-day operations, reducing direct government management burden.

Sector Analysis

The vocational training sector, particularly for youth, is a critical component of workforce development. This contract falls under the 'Other Technical and Trade Schools' category (NAICS 611519). The market for operating such centers is often driven by government funding, with organizations specializing in education and training services competing for these awards. Comparable spending benchmarks would depend on the scale of operations, student enrollment targets, and the specific trades or skills being taught. The federal government, through programs like Job Corps, is a significant funder in this space.

Small Business Impact

The contract indicates that small business participation was not a specific set-aside (ss: false, sb: false). This means the primary award was not designated for small businesses. However, the prime contractor, McConnell Jones Lanier & Murphy LLP, may have subcontracting plans that include small businesses. The level of subcontracting to small businesses will be a key factor in assessing the broader impact on the small business ecosystem. Without specific subcontracting goals or reporting, it's difficult to quantify the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's relevant program offices and the Office of the Assistant Secretary for Administration and Management. Accountability measures are embedded in the contract's performance standards and reporting requirements. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Youth Training Programs
Vocational Rehabilitation Services

Risk Flags

Potential for cost overruns if contractor's fixed price does not adequately account for all operational expenses.
Risk of service quality degradation if contractor prioritizes cost-saving over training effectiveness.
Dependence on contractor's ability to recruit and retain qualified instructors and staff.
Challenges in ensuring consistent program outcomes across different student cohorts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $27.4 million to MCCONNELL JONES LANIER & MURPHY LLP. IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT FOR OPERATION OF THE SACRAMENTO JOB CORPS CENTER AND CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is MCCONNELL JONES LANIER & MURPHY LLP.

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 $27.4 million.

What is the period of performance?

Start: 2015-11-25. End: 2017-11-30.

What is the track record of McConnell Jones Lanier & Murphy LLP in managing federal contracts, particularly in education or training services?

Information regarding the specific track record of McConnell Jones Lanier & Murphy LLP in managing federal contracts, especially within the education or training services sector, is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any prior awards for similar services, and their history of compliance with federal regulations. Without this data, it's difficult to definitively assess their experience and reliability for operating the Sacramento Job Corps Center. Further research into their contract history with the Department of Labor or other federal agencies would be necessary.

How does the cost per student or per training hour for this contract compare to national averages for Job Corps centers or similar vocational training programs?

The provided data does not include specific metrics such as the number of students served or the total training hours delivered, making a direct cost-per-student or cost-per-hour comparison impossible. The total contract value is $27.3 million over 736 days. To benchmark effectively, one would need to know the projected enrollment capacity of the Sacramento Job Corps Center and the expected volume of training hours. National averages for Job Corps can vary significantly based on location, the types of training offered, and support services provided. A detailed analysis would require obtaining the contractor's proposed budget, operational plan, and performance metrics from the Department of Labor.

What are the key performance indicators (KPIs) and success metrics defined in the contract for the operation of the Sacramento Job Corps Center?

The provided data snippet does not specify the key performance indicators (KPIs) or success metrics established within the contract. Typically, Job Corps contracts include metrics related to student enrollment, retention rates, completion of training programs, job placement rates post-graduation, and starting wages of placed graduates. The Department of Labor would have outlined these expectations in the Performance Work Statement (PWS). The contractor's performance would be evaluated against these metrics, influencing future contract renewals or awards. Accessing the full contract document or associated performance reports would be necessary to identify these specific KPIs.

What is the historical spending pattern for the operation of the Sacramento Job Corps Center or similar facilities by the Department of Labor?

The provided data pertains to a specific contract awarded in November 2015 for the initial operation of the Sacramento Job Corps Center. It does not offer historical spending patterns for this center or similar facilities. To understand historical spending, one would need to analyze contract awards for the Sacramento center over previous periods (if it existed prior to this contract) or examine spending on comparable Job Corps centers nationwide. This would involve querying federal procurement databases for past contracts, their values, durations, and the contractors involved to identify trends and fluctuations in federal investment in youth vocational training.

What are the potential risks associated with a Firm Fixed Price (FFP) contract for operating a vocational training center, and how are they mitigated?

A Firm Fixed Price (FFP) contract, while offering budget certainty, carries risks for both the government and the contractor. For the government, the primary risk is that the contractor might cut corners on service quality or staffing to maximize profit if the initial price was set too low or if unforeseen costs arise. For the contractor, the risk is absorbing unexpected cost increases, potentially leading to financial losses or reduced profitability. Mitigation strategies typically include robust performance standards in the contract, clear quality requirements, regular monitoring by the government agency, and potentially incentive clauses tied to performance. The Department of Labor would likely have mechanisms to monitor service delivery and address any deficiencies identified.

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: DOLJ12SA00005

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4828 LOOP CENTRAL DR, STE 1000, HOUSTON, TX, 77081

Business Categories: Black American Owned Business, Category Business, Manufacturer of Goods, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,468,169

Exercised Options: $45,247,545

Current Obligation: $27,354,652

Actual Outlays: $370,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline