EDUCATION & TRAINING RESOURCES LLC awarded $53.1M contract for job corps center operations

Contract Overview

Contract Amount: $53,173,896 ($53.2M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2016-11-29

End Date: 2021-11-30

Contract Duration: 1,827 days

Daily Burn Rate: $29.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF CONTRACT AWARD FOR THE OPERATION OF ONEONTA JCC

Place of Performance

Location: ONEONTA, OTSEGO County, NEW YORK, 13820

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $53.2 million to EDUCATION & TRAINING RESOURCES LLC for work described as: IGF::OT::IGF CONTRACT AWARD FOR THE OPERATION OF ONEONTA JCC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost savings and performance. 3. The contract duration is 1827 days, indicating a long-term commitment for services. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools. 5. The contract was awarded by the Department of Labor, Office of the Assistant Secretary for Administration and Management. 6. The contractor, EDUCATION & TRAINING RESOURCES LLC, has secured this significant award. 7. The contract is for the operation of the Oneonta Job Corps Center.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and performance metrics. The CPIF structure suggests an attempt to align contractor incentives with government objectives, but the ultimate value for money depends on the effectiveness of the training programs and student outcomes. Without specific performance data or comparisons to similar Job Corps center operations, it is difficult to definitively assess if the $53.1 million represents excellent value. The contract's duration implies a substantial investment, and ongoing monitoring of cost efficiency and program impact will be crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The open competition suggests that the Department of Labor sought the most advantageous offer based on a combination of price and other factors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible services at a reasonable cost for the operation of the Job Corps center.

Public Impact

The primary beneficiaries are students enrolled in the Oneonta Job Corps Center, who will receive vocational training and education. The contract ensures the continued operation and delivery of services at the Oneonta Job Corps Center. The geographic impact is focused on the region served by the Oneonta Job Corps Center, likely providing workforce development opportunities. Workforce implications include the employment of instructors, administrative staff, and support personnel at the center, as well as the training of individuals for the local and national workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the training programs.
The CPIF contract type requires careful monitoring to ensure cost controls and incentive alignment.
Details on student placement rates and long-term career success are not readily available for this award.
The specific services provided beyond basic operations are not detailed in the award abstract.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The Cost Plus Incentive Fee structure can encourage efficient performance and cost management.
The contract supports a vital federal program (Job Corps) aimed at workforce development.
The long contract duration suggests a stable operational environment for the center.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at providing disadvantaged youth with the skills and education needed to secure employment. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar government-funded workforce development programs. The market for operating such centers is specialized, often involving non-profit organizations and private companies with expertise in education and training delivery.

Small Business Impact

The award abstract does not indicate any specific small business set-aside provisions for this contract. It is also not specified whether the prime contractor is required to subcontract with small businesses. Further investigation into the contract's terms and conditions 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 be managed by the Department of Labor's contracting officer and program officials. Accountability measures are often tied to the performance standards outlined in the contract and the incentive fee structure. Transparency regarding the contract's performance and expenditures would be subject to federal procurement regulations and reporting requirements, potentially including reviews by the Government Accountability Office (GAO) or the Department of Labor's Inspector General.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Education Contracts

Risk Flags

Performance Risk: Effectiveness of training programs and student outcomes.
Cost Control Risk: Ensuring efficient use of funds under CPIF structure.
Contractor Capability Risk: Ensuring consistent quality of operations.
Data Transparency Risk: Availability of detailed performance and cost data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $53.2 million to EDUCATION & TRAINING RESOURCES LLC. IGF::OT::IGF CONTRACT AWARD FOR THE OPERATION OF ONEONTA JCC

Who is the contractor on this award?

The obligated recipient is EDUCATION & TRAINING RESOURCES LLC.

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 $53.2 million.

What is the period of performance?

Start: 2016-11-29. End: 2021-11-30.

What is the historical spending pattern for the operation of the Oneonta Job Corps Center?

Analyzing the historical spending for the Oneonta Job Corps Center prior to this $53.1 million award would provide crucial context. This would involve examining previous contract awards for the same facility, including their duration, value, and contractor. Understanding if this award represents an increase or decrease in funding compared to previous periods, and whether the contractor is new or incumbent, can shed light on cost trends and program stability. Without this historical data, it's challenging to assess if the current award is in line with past investments or if there have been significant shifts in program costs or scope.

How does the performance of EDUCATION & TRAINING RESOURCES LLC on similar contracts compare?

Evaluating the past performance of EDUCATION & TRAINING RESOURCES LLC on comparable government contracts is essential for assessing risk and value. This would involve reviewing past contract awards to the company, particularly those involving the operation of educational facilities or workforce development programs. Key performance indicators to examine would include adherence to schedules, cost control, quality of services delivered, and any instances of contract disputes or terminations. A track record of successful contract completion and positive performance reviews would increase confidence in their ability to manage the Oneonta Job Corps Center effectively. Conversely, a history of performance issues could signal potential risks.

What are the specific performance metrics and expected outcomes for this contract?

The effectiveness of this $53.1 million contract hinges on clearly defined performance metrics and expected outcomes. While the award abstract indicates the operation of the Oneonta Job Corps Center, it lacks detail on specific targets. These metrics should ideally include student enrollment numbers, completion rates, job placement rates post-graduation, starting salaries of graduates, and employer satisfaction. The Cost Plus Incentive Fee (CPIF) structure suggests that performance against these metrics will influence the final contract cost. A thorough review of the contract's Statement of Work (SOW) and Performance Work Statement (PWS) is necessary to understand these critical success factors and how contractor performance will be measured and incentivized.

How does the cost per student or per training hour compare to industry benchmarks?

To assess the value for money, a comparison of the cost per student or per training hour under this $53.1 million contract against industry benchmarks is vital. This requires calculating the total contract value divided by the expected number of students served annually or the total training hours delivered. These figures would then be benchmarked against similar Job Corps centers or other government-funded vocational training programs. Factors such as the complexity of training offered, regional cost of living, and specific student support services provided can influence these costs. Without such a benchmark, it is difficult to determine if the contract represents an efficient use of taxpayer funds.

What are the potential risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this service?

The Cost Plus Incentive Fee (CPIF) contract type, while designed to incentivize performance and cost control, carries inherent risks. For the operation of a Job Corps center, a key risk is that the contractor might prioritize activities that lead to higher fees over the most effective long-term outcomes for students if the incentive structure is not perfectly aligned. There's also a risk of cost overruns if the base cost estimates are inaccurate, even with incentives. Effective government oversight is crucial to ensure that the contractor is not artificially inflating costs to maximize fees and that the incentives genuinely drive desired performance, such as high graduation and placement rates. The government must diligently monitor costs and performance against established targets.

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-14-R-00018

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Foxmar, Inc.

Address: 2422 AIRWAY CT, BOWLING GREEN, KY, 42103

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: $56,257,401

Exercised Options: $56,257,401

Current Obligation: $53,173,896

Actual Outlays: $23,715,210

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $3,870,072

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline