Department of Labor awards $44.7M contract for technical and trade school services to ODLE MANAGEMENT GROUP, L.L.C

Contract Overview

Contract Amount: $44,679,003 ($44.7M)

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

Awarding Agency: Department of Labor

Start Date: 2016-11-30

End Date: 2022-06-30

Contract Duration: 2,038 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::CT::IGF CENTER OPERATIONS OLD DOMINION JCC

Place of Performance

Location: MONROE, AMHERST County, VIRGINIA, 24574

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $44.7 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: IGF::CT::IGF CENTER OPERATIONS OLD DOMINION 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 control but also carries risk. 3. The duration of the contract is substantial (2038), indicating a long-term need for these services. 4. The NAICS code 611519 points to 'Other Technical and Trade Schools', a specific service area.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure requires careful monitoring to ensure pricing remains reasonable and aligned with performance objectives. Benchmarking against similar CPIF contracts for technical training services is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'FULL AND OPEN COMPETITION' indicates that multiple bidders were likely considered, which typically leads to better price discovery and potentially lower costs for the government. The award to a single entity suggests they offered the best value.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Supports workforce development through technical and trade education. Potential impact on students and vocational training providers in Virginia. Ensures continuity of essential training services for the Department of Labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type requires diligent oversight to manage costs.
Long contract duration may not reflect current market conditions.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded through full and open competition.
Supports critical workforce development needs.
Contract has a clear end date.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on educational services. Benchmarking against similar contracts for technical and vocational training is important to assess value.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The 'VA' (Department of Labor) designation suggests oversight by the department's administration. However, the specific oversight mechanisms and accountability measures for this long-term, CPIF contract are not detailed in the provided data.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Cost overruns due to CPIF structure.
Contract misalignment with evolving agency needs over its long duration.
Potential for contractor to focus on incentives over quality.
Lack of transparency on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $44.7 million to ODLE MANAGEMENT GROUP, L.L.C.. IGF::CT::IGF CENTER OPERATIONS OLD DOMINION JCC

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 $44.7 million.

What is the period of performance?

Start: 2016-11-30. End: 2022-06-30.

How does the awarded price compare to market rates for similar technical and trade school services, considering the CPIF structure?

A comprehensive comparison requires detailed market research on comparable contracts. The CPIF structure introduces variability, making direct price comparisons challenging without analyzing the incentive clauses and actual performance outcomes. Benchmarking should focus on target costs, fee structures, and historical performance data from similar government contracts.

What are the primary risks associated with a Cost Plus Incentive Fee contract of this magnitude and duration?

Key risks include potential cost overruns if the incentive structure is not well-defined or if the government's oversight is insufficient. There's also a risk that the contractor may prioritize achieving incentive targets over broader service quality or long-term value. The extended duration increases the risk of the contract becoming misaligned with evolving agency needs or market conditions.

How effectively does this contract support the Department of Labor's mission and long-term strategic goals?

The effectiveness hinges on the alignment of the training services provided with the department's workforce development objectives. Without specific performance metrics and outcome data, it's difficult to definitively assess effectiveness. The long duration suggests strategic importance, but ongoing evaluation is necessary to ensure continued relevance and impact.

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-15-C-00099

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: $58,135,887

Exercised Options: $58,135,887

Current Obligation: $44,679,003

Actual Outlays: $29,827,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline