Labor Department Awards $51M Contract to ODLE MANAGEMENT GROUP for Technical Training Services

Contract Overview

Contract Amount: $50,982,981 ($51.0M)

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

Awarding Agency: Department of Labor

Start Date: 2017-05-01

End Date: 2023-11-14

Contract Duration: 2,388 days

Daily Burn Rate: $21.4K/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: IGF::OT::IGF DAVID L. CARRASCO JCC/OA/CTS

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79935

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $51.0 million to ODLE MANAGEMENT GROUP, L.L.C. for work described as: IGF::OT::IGF DAVID L. CARRASCO JCC/OA/CTS Key points: 1. The contract, valued at $50,982,981.40, was awarded to ODLE MANAGEMENT GROUP, L.L.C. 2. It falls under the 'Other Technical and Trade Schools' NAICS code (611519). 3. The award method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a competitive process. 4. The contract type is 'COST PLUS INCENTIVE FEE', which can incentivize cost control but also carries risk. 5. The contract duration is substantial at 2388 days (approximately 6.5 years).

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee (CPIF) structure suggests a focus on performance and cost control. However, without specific cost breakdowns or benchmarks for similar technical training services, a definitive assessment of value is difficult. The significant duration implies a need for ongoing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was open, certain sources were initially excluded, potentially impacting the breadth of competition and price discovery. The final award was competitive.

Taxpayer Impact: The competitive nature of the award, despite initial exclusions, aims to secure reasonable pricing for the government. However, the CPIF structure requires careful monitoring to ensure taxpayer funds are used efficiently.

Public Impact

This contract supports the Department of Labor's mission to provide workforce development and training. The services likely impact individuals seeking technical skills and career advancement. The long duration suggests a sustained need for these training programs. The use of CPIF indicates a desire for efficient service delivery and cost management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to scope creep or outdated services.
CPIF contracts require robust oversight to manage costs effectively.
Exclusion of sources in the initial phase warrants scrutiny.

Positive Signals

Full and open competition after exclusion of sources indicates a structured procurement process.
The contract aims to provide essential technical training services.
The CPIF structure can align contractor and government interests on cost and performance.

Sector Analysis

The IT and professional services sector, particularly training and education, sees significant government spending. Benchmarks for similar technical training contracts vary widely based on specialization and duration, but a multi-year, multi-million dollar award like this is common for large-scale federal training initiatives.

Small Business Impact

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

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests a structured procurement process. However, the effectiveness of oversight for a Cost Plus Incentive Fee contract over its long duration will be critical to ensuring accountability and value for taxpayer money.

Related Government Programs

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

Risk Flags

Long contract duration (2388 days).
Cost Plus Incentive Fee (CPIF) contract type.
Exclusion of sources during competition.
Lack of specific detail on training areas.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $51.0 million to ODLE MANAGEMENT GROUP, L.L.C.. IGF::OT::IGF DAVID L. CARRASCO JCC/OA/CTS

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 $51.0 million.

What is the period of performance?

Start: 2017-05-01. End: 2023-11-14.

What specific technical skills are being provided under this contract, and how do they align with current and future workforce needs identified by the Department of Labor?

The provided data does not specify the exact technical skills covered. However, given the NAICS code 'Other Technical and Trade Schools', it likely encompasses vocational training in various trades and technical fields. Alignment with workforce needs would require examining the Department of Labor's strategic goals and labor market analyses that informed the contract's scope.

What were the specific reasons for excluding certain sources during the competition phase, and did this exclusion potentially limit competitive pricing?

The data states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' but does not detail the reasons for exclusion. Such exclusions can be due to specific technical requirements, past performance issues, or other pre-qualification criteria. While the final award was competitive, the initial exclusion might have narrowed the field, potentially impacting the range of bids received and the ultimate price discovery.

How will the Cost Plus Incentive Fee (CPIF) structure be monitored to ensure cost efficiency and prevent potential overruns, given the contract's significant value and duration?

Monitoring a CPIF contract involves establishing clear performance metrics and cost targets. The Department of Labor would need robust financial oversight, regular audits, and performance reviews to track costs against targets and adjust incentive fees accordingly. Effective communication and collaboration between the contracting officer and ODLE MANAGEMENT GROUP are crucial to managing risks and ensuring 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-15-R-00088

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: $58,842,513

Exercised Options: $58,842,513

Current Obligation: $50,982,981

Actual Outlays: $28,990,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline