Labor Department's Iroquois Job Corps Center Contract Valued at $35.2M Faces Scrutiny Over Cost and Competition

Contract Overview

Contract Amount: $35,234,019 ($35.2M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2005-01-01

End Date: 2010-07-31

Contract Duration: 2,037 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE IROQUOIS JOB CORPS CENTER

Place of Performance

Location: MEDINA, ORLEANS County, NEW YORK, 14103

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $35.2 million to EDUCATION & TRAINING RESOURCES LLC for work described as: OPERATION OF THE IROQUOIS JOB CORPS CENTER Key points: 1. The contract for operating the Iroquois Job Corps Center was awarded to EDUCATION & TRAINING RESOURCES LLC for $35.2 million. 2. Competition was described as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', raising questions about the extent of true market engagement. 3. The contract type is 'COST PLUS INCENTIVE FEE', which can incentivize cost overruns if not managed tightly. 4. The sector involves 'Other Technical and Trade Schools', a niche area within education and training resources.

Value Assessment

Rating: questionable

The contract's cost-plus incentive fee structure warrants close examination. Without detailed cost breakdowns and performance metrics, it's difficult to assess if the $35.2 million represents fair value compared to similar vocational training center operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that while competition was sought, certain entities were excluded, potentially limiting the pool of bidders and impacting price discovery. This method needs justification to ensure optimal pricing.

Taxpayer Impact: The total award value of $35.2 million represents taxpayer funds allocated to vocational training. The effectiveness of the competition method and the cost-plus structure will determine the ultimate value for taxpayers.

Public Impact

Job Corps centers provide essential vocational training to disadvantaged youth, impacting their future employment and earning potential. The operational efficiency and cost-effectiveness of this contract directly influence the quality and accessibility of training services offered. Transparency in contract awards and performance is crucial for public trust in government spending on social programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus incentive fee structure
Limited competition after exclusion of sources
Lack of clear performance metrics for value assessment

Positive Signals

Supports vocational training for youth
Operates in a specialized sector

Sector Analysis

The contract falls under the 'Other Technical and Trade Schools' NAICS code (611519), a segment focused on specialized vocational training. Benchmarking against similar Job Corps center operations or other large-scale training programs would be necessary for a comprehensive spending assessment.

Small Business Impact

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

Oversight & Accountability

Oversight of this contract by the Employment and Training Administration is critical, particularly given the cost-plus incentive fee structure and the limited competition. Regular performance reviews and cost audits are essential to ensure accountability and value for money.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Cost-plus incentive fee structure can lead to cost overruns.
Limited competition raises concerns about price discovery and value.
Lack of transparency regarding source exclusion criteria.
Potential for inadequate oversight of performance and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $35.2 million to EDUCATION & TRAINING RESOURCES LLC. OPERATION OF THE IROQUOIS JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is EDUCATION & TRAINING RESOURCES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.2 million.

What is the period of performance?

Start: 2005-01-01. End: 2010-07-31.

What specific criteria led to the exclusion of certain sources in the competition process, and how did this impact the final contract price?

The exclusion of sources suggests a specific justification was provided, possibly related to unique capabilities or past performance. However, without access to the detailed justification, it's impossible to definitively state how this limitation affected price discovery. Generally, reduced competition can lead to higher prices as the incentive to offer the most competitive bid is diminished.

How effectively has EDUCATION & TRAINING RESOURCES LLC managed costs under the Cost Plus Incentive Fee (CPIF) structure to ensure optimal value for the government?

Assessing the effectiveness of cost management under a CPIF contract requires detailed analysis of performance metrics, cost reports, and incentive fee payouts. Without this granular data, it's difficult to determine if costs were controlled or if the incentive structure led to increased spending without commensurate performance gains. A review of past performance and audit reports would be necessary.

What is the measurable impact of the Iroquois Job Corps Center's training programs on participant employment outcomes and long-term career success?

The ultimate effectiveness of the Iroquois Job Corps Center hinges on its ability to successfully train and place participants in meaningful employment. Measuring this impact requires tracking participant graduation rates, job placement statistics, starting salaries, and long-term career progression. This data is crucial for justifying the federal investment and ensuring the program meets its objectives.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 2422 AIRWAY DRIVE, BOWLING GREEN, KY, 42103

Business Categories: Category Business, Educational Institution, Higher Education, Small Business

Financial Breakdown

Contract Ceiling: $61,302,982

Exercised Options: $39,870,682

Current Obligation: $35,234,019

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline