Department of Labor's $35.8M Job Corps Training Fund contract awarded to UBC National Job Corps Training Fund Inc

Contract Overview

Contract Amount: $35,791,578 ($35.8M)

Contractor: UBC National JOB Corps Training Fund Inc

Awarding Agency: Department of Labor

Start Date: 2004-08-01

End Date: 2008-01-31

Contract Duration: 1,278 days

Daily Burn Rate: $28.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TRAINING PROGRAMS

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89119

State: Nevada Government Spending

Plain-Language Summary

Department of Labor obligated $35.8 million to UBC NATIONAL JOB CORPS TRAINING FUND INC for work described as: TRAINING PROGRAMS Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. The contract was not competed, raising questions about price discovery and value for money. 3. A single awardee suggests limited market engagement and potential lack of competitive pressure. 4. The contract duration of 1278 days (over 3 years) represents a significant, long-term commitment. 5. The North American Industry Classification System (NAICS) code 611513 points to a specialized training service. 6. The contract's base value of $28,006 appears disproportionately low compared to the total award amount, suggesting significant potential for modifications or option exercises.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar apprenticeship training programs. The cost-plus-fixed-fee structure, while common for complex services, can lead to higher overall costs if not managed tightly. The significant difference between the initial base value and the total award suggests substantial growth or modifications occurred, necessitating a closer look at the cost drivers and justification for increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach limits the opportunity for competitive bidding, which typically drives down prices and encourages innovation. Without a competitive process, it is difficult to ascertain if the selected contractor offered the best value or if alternative solutions were overlooked.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no direct price competition to ensure the most economical option is chosen.

Public Impact

Individuals seeking vocational training and apprenticeship opportunities benefit from this contract. The services delivered include apprenticeship training, equipping individuals with job-ready skills. The contract is associated with the state of Nevada (SN: NEVADA), indicating a geographic focus for service delivery. The contract supports the workforce development sector by providing training and skill-building programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant award raises concerns about potential overpayment and lack of market testing.
Cost-plus-fixed-fee contracts can incentivize higher spending if not rigorously monitored.
The substantial difference between the base value and total award warrants scrutiny of contract modifications and cost justifications.

Positive Signals

The contract addresses a critical need for job training and workforce development.
The long-term nature of the contract suggests a sustained commitment to providing these essential services.
The awardee is specifically identified as a 'Job Corps Training Fund', implying a focused mission on this area.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on apprenticeship and vocational training. The market for such services is often driven by government funding and partnerships with educational institutions and industry. Comparable spending benchmarks would involve analyzing other federal or state contracts for similar workforce development and job training programs, considering factors like trainee numbers, program duration, and skill sets taught.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. As this was a sole-source award, the typical mechanisms for engaging small businesses through competition or subcontracting mandates may not have been applied. Further investigation would be needed to determine if the prime contractor has any voluntary small business engagement or subcontracting activities related to this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency would be enhanced by public access to contract performance reports, cost audits, and any Inspector General reviews. The specific oversight mechanisms and accountability measures would depend on the contract's terms and conditions.

Related Government Programs

Department of Labor Training Programs
Workforce Investment Act Programs
Job Corps National Programs
Apprenticeship Training Services

Risk Flags

Sole-source award
Cost-plus contract type
Significant difference between base and total award value

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $35.8 million to UBC NATIONAL JOB CORPS TRAINING FUND INC. TRAINING PROGRAMS

Who is the contractor on this award?

The obligated recipient is UBC NATIONAL JOB CORPS TRAINING FUND INC.

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 $35.8 million.

What is the period of performance?

Start: 2004-08-01. End: 2008-01-31.

What is the specific nature of the services provided under the UBC National Job Corps Training Fund Inc. contract?

The contract, identified by NAICS code 611513, pertains to Apprenticeship Training. This indicates that the services provided by UBC National Job Corps Training Fund Inc. involve structured programs designed to train individuals for specific occupations. These programs typically combine on-the-job training with related classroom instruction, aiming to equip participants with the necessary skills and knowledge to become proficient in a trade or profession. The 'Job Corps' designation suggests a focus on training for disadvantaged youth or individuals facing employment barriers, aligning with broader federal workforce development goals.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE'. Without further documentation, the specific justification for this sole-source award is unknown. Common reasons for sole-source awards include situations where only one responsible source can provide the required services, a public exigency exists, or the contract is for a specialized service where competition is not feasible or practical. For a training program, potential justifications could involve unique expertise, established infrastructure, or a specific mandate. However, the lack of competition means taxpayers did not benefit from a competitive bidding process that could have potentially secured a lower price or better terms.

How does the total award amount of $35.8 million compare to the initial base value of $28,006?

The substantial difference between the total award amount ($35,791,577.82) and the initial base value ($28,006) is highly significant and suggests that the contract underwent substantial modifications, option exercises, or funding increases over its duration. Base values often represent the initial guaranteed amount, with subsequent increases reflecting the full scope of work performed or anticipated. This large delta necessitates a review of the contract's modification history to understand the reasons for the increased expenditure, including whether the additional funding was justified by expanded services, increased participant numbers, or unforeseen circumstances. It raises questions about the initial contract planning and the cost-effectiveness of the subsequent changes.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type?

A Cost Plus Fixed Fee (CPFF) contract type, like the one used here, involves the contractor being reimbursed for all allowable costs plus a fixed fee representing profit. The primary risk for the government is that the contractor has less incentive to control costs compared to fixed-price contracts, as their profit is fixed regardless of the final cost. This can lead to cost overruns if not managed diligently. The government bears the risk of cost increases, while the contractor is assured of their profit margin. Effective oversight, detailed cost accounting, and robust negotiation are crucial to mitigate these risks and ensure value for money.

What is the significance of the contract being awarded to 'UBC NATIONAL JOB CORPS TRAINING FUND INC.'?

The award to 'UBC NATIONAL JOB CORPS TRAINING FUND INC.' is significant because it identifies the specific entity responsible for delivering the training services. The name itself suggests a focus on the Job Corps program, a federal initiative aimed at providing job training and education to at-risk youth. This implies that the contractor is likely an established organization with experience in workforce development and potentially a specific mission aligned with the goals of the Job Corps. Understanding the contractor's track record, capacity, and past performance would be crucial in assessing the overall effectiveness and reliability of this contract.

What does the contract duration of 1278 days imply?

A contract duration of 1278 days, which is approximately 3.5 years, indicates a long-term commitment by the Department of Labor to the training services provided by UBC National Job Corps Training Fund Inc. Long-term contracts can offer stability for both the government and the contractor, allowing for sustained program delivery and workforce planning. However, they also tie up significant resources over an extended period. For taxpayers, a long duration on a sole-source, cost-reimbursable contract warrants careful monitoring to ensure continued value and performance throughout the contract's life, especially given the potential for cost increases over time.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Apprenticeship Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DOL041RP00039

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6801 PLACID STREET, LAS VEGAS

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $98,137,339

Exercised Options: $98,099,954

Current Obligation: $35,791,578

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline