Department of Labor awards $81.4M contract to Career Systems Development Corp for San Jose Job Corps Center operations

Contract Overview

Contract Amount: $81,384,940 ($81.4M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2016-01-01

End Date: 2021-06-30

Contract Duration: 2,007 days

Daily Burn Rate: $40.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

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 TO OPERATE THE SAN JOSE JOB CORPS CENTER AND PROVIDE CAREER TRANSITION SERVICES.

Place of Performance

Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95127

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $81.4 million to CAREER SYSTEMS DEVELOPMENT CORPORATION 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 TO OPERATE THE SAN JOSE JOB CORPS CENTER AND PROVIDE CAREER TRANSITION SERVICES. Key points: 1. The contract focuses on vocational training and career transition services for youth aged 16-24. 2. Career Systems Development Corporation is the awardee for operating the San Jose Job Corps Center. 3. The contract was awarded under full and open competition. 4. The period of performance spans from January 1, 2016, to June 30, 2021.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. Benchmarking against similar vocational training contracts is needed to assess pricing effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The use of CPIF contract type warrants scrutiny to ensure taxpayer funds are used efficiently and effectively for the intended vocational training outcomes.

Public Impact

Provides essential vocational training and career services to young adults, potentially improving employment outcomes. The Job Corps program aims to reduce unemployment and poverty among youth. The contract supports local workforce development in San Jose, California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type requires careful monitoring to control costs.
Lack of specific performance metrics in the provided data makes it difficult to assess program effectiveness.
The contract duration is substantial, requiring ongoing oversight.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive and fair process.
Addresses a critical need for youth vocational training and employment services.
Supports a well-established federal program (Job Corps).

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' sector, specifically vocational training. Spending benchmarks for similar youth development and training programs would provide context for the $81.4 million award.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Regular performance reviews and financial audits are crucial for ensuring accountability and 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.
Lack of specific performance metrics in the provided data.
Contract duration requires sustained oversight.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $81.4 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. IGF::CT::IGF JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. THIS IS THE INITIAL CONTRACT TO OPERATE THE SAN JOSE JOB CORPS CENTER AND PROVIDE CAREER TRANSITION SERVICES.

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 $81.4 million.

What is the period of performance?

Start: 2016-01-01. End: 2021-06-30.

What are the key performance indicators (KPIs) for this contract, and how is success measured in terms of youth employment and skill attainment?

The provided data does not specify the key performance indicators (KPIs) for this contract. A thorough review would require access to the contract's statement of work and performance metrics. Typically, for Job Corps contracts, KPIs would include metrics such as student enrollment rates, completion rates, job placement rates, starting wages of placed graduates, and employer satisfaction. Measuring success against these benchmarks is crucial for evaluating the program's effectiveness and the contractor's performance.

How does the Cost Plus Incentive Fee (CPIF) structure incentivize Career Systems Development Corporation to achieve cost savings and performance targets?

A CPIF contract establishes a target cost and a target profit. If the final cost is below the target, both the government and the contractor share in the savings based on a pre-defined formula. Conversely, if the final cost exceeds the target, the contractor's profit is reduced. Incentive fees are added or subtracted based on performance against specific objectives, such as timely completion or quality standards. This structure aims to align the contractor's financial interests with the government's goals for cost control and performance.

What is the historical performance record of Career Systems Development Corporation in operating similar vocational training programs?

Information regarding the historical performance record of Career Systems Development Corporation in operating similar vocational training programs is not available in the provided data. A comprehensive assessment would necessitate reviewing past contract performance evaluations, client testimonials, and any documented successes or challenges encountered by the organization in managing federal or state-funded training initiatives. This due diligence is vital for understanding their capacity and reliability.

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: DOLJ14SA00009

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $157,835,908

Exercised Options: $112,470,101

Current Obligation: $81,384,940

Actual Outlays: $31,416,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline