Department of Labor's $46.2M contract with ODLE MANAGEMENT GROUP, L.L.C. for technical and trade schools services

Contract Overview

Contract Amount: $46,206,270 ($46.2M)

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

Awarding Agency: Department of Labor

Start Date: 2016-11-01

End Date: 2021-11-30

Contract Duration: 1,855 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: PINELLAS COUNTY JCC CONTRACT INCLUDES OA/CTS IGF::OT::IGF

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33701

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $46.2 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: PINELLAS COUNTY JCC CONTRACT INCLUDES OA/CTS IGF::OT::IGF Key points: 1. The contract's cost-plus incentive fee structure suggests a focus on performance-based outcomes. 2. Competition was full and open after exclusion of sources, indicating a deliberate procurement process. 3. The contract duration of 1855 days (approx. 5 years) points to a significant, long-term service requirement. 4. The North American Industry Classification System (NAICS) code 611519 indicates services related to technical and trade schools. 5. The contract was awarded to ODLE MANAGEMENT GROUP, L.L.C., a single entity. 6. The contract's value of over $46 million signifies a substantial investment in workforce development or related services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. The cost-plus incentive fee (CPIF) structure aims to align contractor and government interests by rewarding performance, but can also lead to cost overruns if not managed carefully. The total obligated amount of $46.2 million over approximately five years suggests a significant program, but its value-for-money depends heavily on the effectiveness and efficiency of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific designation implies that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. The number of bidders (5) is moderate, suggesting some level of interest but potentially not the widest possible pool. This procurement method requires justification for the exclusion of sources.

Taxpayer Impact: The exclusion of sources, even in a full and open competition, raises questions about whether taxpayers received the absolute best value by limiting the potential bidder pool. However, the 'full and open' aspect suggests an effort to ensure a competitive environment.

Public Impact

The primary beneficiaries are likely individuals seeking training or services through the technical and trade schools supported by this contract. The contract delivers services related to technical and trade education, potentially impacting workforce development and skill-building. The geographic impact is centered in Florida (ST: FL, SN: FLORIDA), suggesting a regional focus for the services provided. Workforce implications could include job creation for instructors and support staff within the educational institutions, as well as improved employment prospects for trainees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on the specific services provided under NAICS 611519 makes it difficult to assess performance outcomes.
The 'exclusion of sources' clause requires further investigation to understand its impact on competition and potential cost savings.
CPIF contracts can be complex to manage and may incentivize cost increases if performance metrics are not tightly defined and monitored.
The contract's significant value necessitates robust oversight to ensure funds are used effectively and efficiently.

Positive Signals

The use of 'full and open competition' indicates an attempt to leverage market forces for better pricing and service.
The CPIF contract type suggests a focus on achieving specific performance targets, which can lead to better program outcomes.
The award to a single contractor implies a potentially streamlined management approach for the services rendered.
The contract's duration suggests a stable, long-term commitment to the services, providing continuity for beneficiaries.

Sector Analysis

The contract falls under the Education and Training sector, specifically within technical and trade schools (NAICS 611519). This sector is crucial for workforce development, providing specialized skills training that aligns with industry demands. Comparable spending in this area can vary widely based on the scale and scope of training programs, but government contracts often focus on specific vocational needs or re-skilling initiatives. The market size for such services is substantial, driven by both individual demand and government-funded workforce programs.

Small Business Impact

There is no indication that this contract included small business set-asides (ss: false) or that subcontracting was a primary focus (sb: false). This suggests that the primary award was made to a large business or that subcontracting opportunities were not a specific requirement of the solicitation. The impact on the small business ecosystem is likely minimal unless ODLE MANAGEMENT GROUP, L.L.C. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (SA). The effectiveness of oversight depends on the clarity of the contract's performance metrics, regular reporting requirements, and the agency's capacity to monitor contractor performance and expenditures. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Education Vocational Training Grants
Department of Defense Transition Assistance Programs
State Workforce Development Grants
Job Corps Program

Risk Flags

Potential for cost overruns inherent in CPIF contracts if not managed closely.
Justification for 'exclusion of sources' requires scrutiny to ensure full competitive potential was realized.
Lack of specific performance metrics makes value-for-money assessment difficult without further data.
Contract performance history of ODLE MANAGEMENT GROUP, L.L.C. is unknown and needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $46.2 million to ODLE MANAGEMENT GROUP, L.L.C.. PINELLAS COUNTY JCC CONTRACT INCLUDES OA/CTS IGF::OT::IGF

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 $46.2 million.

What is the period of performance?

Start: 2016-11-01. End: 2021-11-30.

What specific technical and trade school services are being provided under this contract?

The contract's NAICS code (611519) broadly covers 'Other Technical and Trade Schools.' Without further details, the specific services could range from vocational training in skilled trades (e.g., HVAC, electrical, plumbing), to specialized technical certifications, or even administrative support for educational programs. The Department of Labor's involvement suggests a focus on workforce development, potentially aimed at preparing individuals for in-demand occupations or providing re-training opportunities. Understanding the precise curriculum, target student population, and learning outcomes is crucial for assessing the contract's effectiveness and value.

How does the $46.2 million contract value compare to similar technical and trade school contracts awarded by the federal government?

Comparing the $46.2 million value requires context regarding the contract's duration and scope. Over its 1855-day (approximately 5-year) period, this represents an average annual expenditure of roughly $9.24 million. Federal spending on technical and trade education varies significantly. Large-scale programs, such as those under the Workforce Innovation and Opportunity Act or specific agency initiatives like Job Corps, can involve hundreds of millions of dollars annually. Smaller, more localized contracts might be in the low millions. This contract appears to be of moderate to significant size within its specific niche, likely supporting a substantial training operation or a network of facilities.

What are the key performance indicators (KPIs) for this Cost Plus Incentive Fee (CPIF) contract, and how are they measured?

The specific Key Performance Indicators (KPIs) for this CPIF contract are not detailed in the provided data. However, for a contract involving technical and trade schools, typical KPIs could include: student completion rates, job placement rates post-training, employer satisfaction with graduates' skills, adherence to training schedules, and cost-efficiency metrics. Under a CPIF structure, the government and contractor agree on a target cost and a target profit. If the final cost is below the target, both share in the savings (incentive fee). If costs exceed the target, profit is reduced, potentially to zero, and in some cases, the contractor may owe the government. Robust KPIs are essential to ensure the incentive fee effectively drives desired outcomes and value for taxpayer money.

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

Information regarding the specific track record of ODLE MANAGEMENT GROUP, L.L.C. in managing federal contracts, especially within the education or workforce development sector, is not provided in the data snippet. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes or terminations, and their experience with similar CPIF or large-scale service contracts. Their ability to successfully execute this $46.2 million contract hinges on their demonstrated capacity, financial stability, and past performance in delivering quality services on time and within budget.

What is the justification for the 'exclusion of sources' in this 'full and open competition' procurement?

The 'exclusion of sources' clause in a 'full and open competition' indicates that while the competition was generally open, specific potential offerors were deliberately excluded from the bidding process. The justification for such exclusions typically falls under specific regulatory exceptions, such as when only a limited number of responsible sources can fulfill the requirement, or when the exclusion is necessary for reasons of national security or proprietary data. For this contract, the Department of Labor would have had to document why certain sources were excluded. This could be due to specialized capabilities, prior performance issues, or other factors deemed critical by the agency. The transparency and validity of this justification are key to ensuring fair competition and optimal value.

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: DOL-ETA-16-R-00053

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Eckerd Youth Alternatives, Inc.

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

Business Categories: Asian Pacific American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $49,286,097

Exercised Options: $49,286,097

Current Obligation: $46,206,270

Actual Outlays: $28,361,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline