Department of Labor awards $48.7M contract to INSIGHTS TRAINING GROUP, LLC for Job Corps Center Operations

Contract Overview

Contract Amount: $48,745,364 ($48.7M)

Contractor: Insights Training Group, LLC

Awarding Agency: Department of Labor

Start Date: 2016-12-23

End Date: 2022-01-31

Contract Duration: 1,865 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::CT::IGF CENTER OPERATIONS - MUHLENBERG JOB CORPS CENTER

Place of Performance

Location: GREENVILLE, MUHLENBERG County, KENTUCKY, 42345

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $48.7 million to INSIGHTS TRAINING GROUP, LLC for work described as: IGF::CT::IGF CENTER OPERATIONS - MUHLENBERG JOB CORPS CENTER Key points: 1. The contract value of $48.7M over 5 years indicates significant investment in training services. 2. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 3. The Cost Plus Incentive Fee (CPIF) pricing structure introduces potential for cost overruns if not managed carefully. 4. The sector is 'Other Technical and Trade Schools', highlighting a focus on vocational training.

Value Assessment

Rating: fair

The contract is a Cost Plus Incentive Fee type, which can lead to higher costs than fixed-price contracts if performance targets are not met efficiently. Benchmarking against similar vocational training contracts would be necessary for a precise value assessment.

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 indicates that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: The significant contract value suggests a substantial allocation of taxpayer funds towards vocational training programs managed by the Department of Labor.

Public Impact

Impacts students seeking vocational training and career development through the Job Corps program. Supports local employment in Kentucky through the operation of the Muhlenberg Job Corps Center. Ensures continuity of essential training services for disadvantaged youth and young adults.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee structure can incentivize higher costs.
Exclusion of sources in competition may limit optimal price discovery.
Contract duration of over 5 years requires ongoing performance monitoring.

Positive Signals

Full and open competition ensures a broad base of potential offerors.
Focus on vocational training addresses critical workforce development needs.
Multiple awards (no: 3) suggest potential for future task orders and flexibility.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, specifically related to the operation of Job Corps centers. Spending in this area is driven by federal initiatives to provide vocational training and employment opportunities to young people.

Small Business Impact

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

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management oversees this contract. Regular performance reviews and audits are crucial to ensure accountability and effective use of funds.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPIF structure.
Limited transparency on small business participation.
Risk of performance drift over the long contract duration.
Effectiveness dependent on quality of training and job placement outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $48.7 million to INSIGHTS TRAINING GROUP, LLC. IGF::CT::IGF CENTER OPERATIONS - MUHLENBERG JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is INSIGHTS TRAINING GROUP, 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 $48.7 million.

What is the period of performance?

Start: 2016-12-23. End: 2022-01-31.

What is the cost-effectiveness of the services provided under this contract compared to similar training programs?

Assessing cost-effectiveness requires detailed performance metrics and comparison with benchmarks for vocational training. The CPIF structure means costs can vary, making direct comparison challenging without analyzing incentive fee payouts and achieved outcomes against initial projections. Benchmarking against other Job Corps centers or similar federal training initiatives would provide better insight.

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

The primary risk with CPIF is that the government may pay more than necessary if the contractor is incentivized to increase costs to meet performance targets. Effective oversight is crucial to ensure targets are challenging yet achievable without unnecessary cost escalation. Monitoring contractor performance against established metrics and negotiating fair incentive fees are key mitigation strategies.

How effectively does this contract support the Department of Labor's mission of workforce development?

This contract directly supports the mission by funding the operation of a Job Corps center, providing vocational training and employment assistance to eligible youth. Its effectiveness hinges on the quality of training, placement rates into meaningful employment, and the overall impact on participants' long-term economic self-sufficiency. Success metrics should align with broader workforce development goals.

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-00001

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 331 N MAIN ST, MARION, VA, 24354

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $58,407,950

Exercised Options: $58,407,950

Current Obligation: $48,745,364

Actual Outlays: $25,454,968

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline