Department of Labor's $95.8M contract for Muhlenberg Job Corps Center operations awarded to Horizons Youth Services, L.C

Contract Overview

Contract Amount: $95,784,209 ($95.8M)

Contractor: Horizons Youth Services, L.C.

Awarding Agency: Department of Labor

Start Date: 2004-05-01

End Date: 2014-06-30

Contract Duration: 3,712 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF MUHLENBERG JOB CORPS CENTER

Place of Performance

Location: GREENVILLE, MUHLENBERG County, KENTUCKY, 42345

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $95.8 million to HORIZONS YOUTH SERVICES, L.C. for work described as: OPERATION OF MUHLENBERG JOB CORPS CENTER Key points: 1. The contract spans over a decade, indicating a long-term commitment to the service provider. 2. The cost-plus-incentive-fee (CPIF) contract structure suggests performance-based incentives tied to cost and other metrics. 3. The absence of small business set-asides or subcontracting requirements warrants further investigation into small business participation. 4. The contract's duration and value place it as a significant investment in workforce development. 5. The 'Other Technical and Trade Schools' classification points to a focus on vocational training and education. 6. The definitive contract type implies a clear scope of work and established terms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts for similar Job Corps centers. The cost-plus-incentive-fee structure allows for flexibility but requires careful monitoring to ensure cost efficiency. The total award amount of $95.8 million over approximately 10 years suggests an average annual cost of roughly $9.6 million, which needs to be assessed against the services delivered and the number of individuals served.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The fact that it resulted in a single award suggests that Horizons Youth Services, L.C. was deemed the most advantageous offer. The level of competition is a positive sign for price discovery, though the specific number of bidders is not provided.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

The primary beneficiaries are the individuals enrolled in the Muhlenberg Job Corps Center, who receive vocational training and educational services. The contract supports the delivery of workforce development programs aimed at preparing youth for employment. The geographic impact is concentrated in Kentucky, where the Muhlenberg Job Corps Center is located. The contract has implications for the local workforce, potentially creating or sustaining jobs related to the center's operation and training programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business subcontracting goals may limit opportunities for small businesses.
The long contract duration could potentially lead to complacency if not managed with rigorous oversight.
CPIF contracts require careful monitoring to ensure cost controls are effective and incentives are aligned with government objectives.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract's long-term nature provides stability for program delivery and participant services.
The CPIF structure incentivizes the contractor to perform efficiently and effectively.

Sector Analysis

This contract falls within the education and training sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at addressing youth unemployment and skill gaps. Comparable spending benchmarks would involve looking at other Job Corps center operations contracts or similar large-scale workforce development programs administered by the Department of Labor or other agencies.

Small Business Impact

The provided data indicates that small business set-asides were not utilized for this contract (sb: false). There is also no explicit mention of subcontracting requirements for small businesses. This suggests that opportunities for small businesses may be limited to direct competition for the prime contract or through potential voluntary subcontracting by the awardee. Further analysis would be needed to determine if any subcontracting occurred.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to program specific regulations. Transparency is generally maintained through contract award databases and public reporting requirements. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Long contract duration may reduce flexibility
CPIF requires careful monitoring of cost and performance incentives
Lack of explicit small business subcontracting requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $95.8 million to HORIZONS YOUTH SERVICES, L.C.. OPERATION OF MUHLENBERG JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is HORIZONS YOUTH SERVICES, L.C..

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $95.8 million.

What is the period of performance?

Start: 2004-05-01. End: 2014-06-30.

What is the historical spending pattern for the Muhlenberg Job Corps Center operations?

The provided data shows a single definitive contract awarded to Horizons Youth Services, L.C. for the operation of the Muhlenberg Job Corps Center, totaling $95,784,209, with a start date of May 1, 2004, and an end date of June 30, 2014. This indicates a consistent, long-term award for this specific function over approximately a decade. Without access to prior contract awards for this center or detailed annual spending breakdowns within this contract, it's difficult to establish a more granular historical spending pattern. However, the substantial value and duration suggest a significant and stable investment by the Department of Labor in this facility's operations.

How does the cost-plus-incentive-fee (CPIF) structure impact value for money in this contract?

A Cost-Plus-Incentive-Fee (CPIF) contract structure aims to incentivize the contractor to control costs while achieving performance targets. In this contract, Horizons Youth Services, L.C. would be reimbursed for allowable costs, plus a fee that is adjusted based on whether the final costs are below or above a target cost, and performance against specific objectives. This structure can drive value for money by aligning the contractor's profit motive with the government's goals of cost efficiency and program effectiveness. However, the effectiveness of CPIF hinges on well-defined performance metrics and realistic target costs. Without insight into the specific incentive targets and outcomes, it's challenging to definitively assess the value realized. Rigorous oversight is crucial to ensure the incentives are driving the desired results and not leading to unintended consequences or inflated costs.

What is the contractor's track record with the Department of Labor or similar federal agencies?

The provided data identifies Horizons Youth Services, L.C. as the contractor for the Muhlenberg Job Corps Center. To assess their track record, one would need to examine their performance history on this and potentially other contracts with the Department of Labor or similar agencies. This would involve reviewing past performance evaluations, any contract disputes or awards, and their experience managing large-scale educational or training programs. A positive track record would indicate reliability and capability, while a history of issues might raise concerns about future performance. Without access to this specific performance data, a comprehensive assessment of the contractor's track record is not possible based solely on the provided contract details.

Are there any comparable contracts for operating Job Corps centers that can provide a benchmark for this award?

Benchmarking this contract requires identifying other Department of Labor contracts for the operation of Job Corps centers, particularly those of similar size, scope, and geographic region. The value of $95.8 million over approximately 10 years for the Muhlenberg center suggests an average annual cost of around $9.6 million. Comparable contracts would allow for an assessment of whether this annual cost is in line with market rates for similar services. Factors such as the number of students served, the types of training offered, and the local cost of living can influence these benchmarks. A detailed comparison would involve analyzing the scope of work, performance metrics, and pricing structures of other Job Corps center contracts to determine if this award represents good value for money.

What are the potential risks associated with a long-duration definitive contract like this?

Long-duration definitive contracts, such as this one spanning over a decade, carry several potential risks. One primary risk is scope creep or the potential for the contract's requirements to expand beyond the original intent without adequate adjustments to cost or schedule, especially if not managed tightly. Another risk is contractor complacency; a long-term relationship might reduce the incentive for the contractor to continuously innovate or improve services if they feel secure in their position. Furthermore, market conditions, technological advancements, or changes in federal policy could render the contract's terms or services outdated over its extended duration, potentially leading to inefficiencies or a need for costly modifications. Finally, the long commitment ties up significant resources, potentially limiting flexibility for the agency to adapt to evolving needs or to pursue alternative solutions.

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

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Contractor Details

Parent Company: Endless Horizons Inc (UEI: 103263760)

Address: 3586 HORIZONS WAY, HARRISONBURG, VA, 22802

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $416,733,509

Exercised Options: $416,733,509

Current Obligation: $95,784,209

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline