Job Corps vocational training contract awarded to Adams and Associates Inc. for over $58 million

Contract Overview

Contract Amount: $58,140,820 ($58.1M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2016-06-23

End Date: 2021-08-31

Contract Duration: 1,895 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED 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 FOR THE CASCADES JOB CORPS COLLEGE AND CAREER ACADEMY.

Place of Performance

Location: SEDRO WOOLLEY, SKAGIT County, WASHINGTON, 98284

State: Washington Government Spending

Plain-Language Summary

Department of Labor obligated $58.1 million to ADAMS AND ASSOCIATES INC 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 THE CASCADES JOB CORPS COLLEGE AND CAREER ACADEMY. Key points: 1. The contract supports vocational training for youth aged 16-24. 2. This represents the initial contract for the Cascades Job Corps College and Career Academy. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. The duration of the contract is approximately 1895 days. 5. The contract was awarded under full and open competition. 6. The North American Industry Classification System (NAICS) code is 611519 for Other Technical and Trade Schools.

Value Assessment

Rating: fair

The contract value of $58.14 million over approximately five years suggests a significant investment in youth vocational training. Benchmarking this against similar Job Corps center contracts would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure means the government pays allowable costs plus a fixed fee, which can lead to cost overruns if not managed carefully. Without specific performance metrics and outcomes, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to compete. With 5 bids received, this suggests a reasonable level of competition for this type of service. A competitive bidding process is generally expected to drive down prices and ensure the government receives fair market value for the services procured.

Taxpayer Impact: Full and open competition benefits taxpayers by fostering a competitive environment that can lead to more cost-effective contract awards and potentially better service quality.

Public Impact

Young adults aged 16-24 benefit from vocational training and career development opportunities. The contract delivers essential services for the Cascades Job Corps College and Career Academy. The geographic impact is focused on the area served by the Cascades Job Corps center in Washington State. The program aims to improve workforce readiness and employability for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent cost escalation.
Performance outcomes and effectiveness of the training program need continuous monitoring.
Ensuring equitable access and quality of training across all participants is crucial.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract aims to provide valuable vocational training to a target demographic.
The fixed fee component of the contract provides some cost certainty for the government.

Sector Analysis

This contract falls within the education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at addressing youth unemployment and skill gaps. Comparable spending benchmarks would involve looking at other Job Corps center contracts or similar government-funded workforce development programs. The market for such services includes various educational institutions and private companies specializing in workforce training.

Small Business Impact

The data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms likely competed for and won this award. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary data. The impact on the small business ecosystem is neutral to potentially negative if small businesses were excluded from prime contracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Inspector General and relevant program offices. Accountability measures would be tied to performance metrics outlined in the contract. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General's office would be responsible for auditing and investigating potential fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Training Grants

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Performance metrics and outcomes need clear definition and monitoring.
Potential for cost overruns if not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $58.1 million to ADAMS AND ASSOCIATES INC. 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 THE CASCADES JOB CORPS COLLEGE AND CAREER ACADEMY.

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES INC.

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 $58.1 million.

What is the period of performance?

Start: 2016-06-23. End: 2021-08-31.

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

The Job Corps program has been a consistent part of the Department of Labor's budget for decades, focusing on providing vocational training to disadvantaged youth. Historical spending has fluctuated based on appropriations and program priorities, but it generally represents a significant investment in workforce development. Analyzing specific annual appropriations and contract awards over the past 10-20 years would reveal trends in funding levels, the number of centers operated, and the types of services procured. For instance, shifts in economic conditions or policy priorities might lead to increases or decreases in funding, or a focus on different training sectors. Understanding these historical patterns provides context for the $58 million awarded in this specific contract, allowing for comparison against past investments and assessment of whether current spending aligns with historical norms or represents a significant deviation.

How does the per-unit cost of training under this contract compare to other Job Corps centers?

Determining the precise per-unit cost of training requires detailed data on the number of students served, the duration of their training, and the specific services provided (e.g., tuition, housing, stipends, career services). Without this granular information, a direct per-unit cost comparison is not feasible. However, the total contract value of $58.14 million over approximately five years suggests an average annual value of over $11.6 million. If the Cascades Job Corps center serves several hundred students annually, the per-student cost could range significantly depending on the intensity and duration of the training programs offered. Benchmarking against publicly available data for other Job Corps centers, if published by the Department of Labor or GAO, would be the next step. Factors like regional cost of living, specific trade programs offered, and student support services can influence these costs.

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 revolve around student outcomes and program efficiency. Common KPIs include: 1) On-time completion rates for training programs; 2) Graduation rates; 3) Placement rates in meaningful employment or further education/training post-graduation; 4) Starting wages of placed graduates; 5) Retention rates of graduates in their jobs; and 6) Cost efficiency metrics. The Department of Labor sets standards for these KPIs, and contractors are evaluated based on their performance against these benchmarks. For this specific contract with Adams and Associates Inc., the success would be measured by how effectively the Cascades Job Corps College and Career Academy prepares its 16-24 year old participants for successful careers, as reflected in these outcome-oriented metrics.

What is the track record of Adams and Associates Inc. in managing federal contracts, particularly in the education or training sector?

Adams and Associates Inc. has a history of managing federal contracts, including those related to workforce development and education. A thorough review of their contract history with federal agencies, such as the Department of Labor, Department of Education, or others, would be necessary to assess their performance. This would involve examining past contract awards, their values, durations, and importantly, their performance evaluations and any instances of contract disputes, terminations, or corrective actions. Information from sources like the Federal Procurement Data System (FPDS) or agency-specific contract databases can provide insights into their reliability, efficiency, and success in delivering services. Their experience with the Job Corps program specifically would be a strong indicator of their suitability for this role.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for vocational training?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Adams and Associates Inc. for the Cascades Job Corps, carry inherent risks. The primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee itself does not increase. Effective oversight by the contracting agency is crucial to scrutinize allowable costs and ensure the contractor exercises due diligence in managing expenses. Another risk is potential scope creep, where the services provided expand beyond the original intent without a corresponding adjustment to the fee, potentially increasing the overall cost to the government. Ensuring clear definitions of allowable costs and robust reporting mechanisms are vital mitigation strategies.

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-16-R-00010

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $58,403,550

Exercised Options: $58,403,550

Current Obligation: $58,140,820

Actual Outlays: $25,516,632

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $2,243,620

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline