Job Corps Center Contract Awarded to Alutiiq Professional Services for $23.6M

Contract Overview

Contract Amount: $23,562,453 ($23.6M)

Contractor: Alutiiq Professional Services, LLC

Awarding Agency: Department of Labor

Start Date: 2006-10-27

End Date: 2009-03-31

Contract Duration: 886 days

Daily Burn Rate: $26.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATON OF THE FLINT / GENESEE JOB CORPS CENTER IN THE STATE OF MICHIGAN

Place of Performance

Location: FLINT, GENESEE County, MICHIGAN, 48505

State: Michigan Government Spending

Plain-Language Summary

Department of Labor obligated $23.6 million to ALUTIIQ PROFESSIONAL SERVICES, LLC for work described as: OPERATON OF THE FLINT / GENESEE JOB CORPS CENTER IN THE STATE OF MICHIGAN Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Long-term contract duration of 886 days. 3. Cost-plus incentive fee contract type can lead to cost overruns. 4. Sector is technical and trade schools, supporting workforce development.

Value Assessment

Rating: questionable

The contract type is Cost Plus Incentive Fee, which can incentivize contractors to exceed initial cost estimates. Without a clear benchmark or comparison, it's difficult to assess if the $23.6 million price is reasonable for operating a Job Corps center.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited or potentially sole-source award. This lack of competition limits price discovery and may result in a higher cost to taxpayers.

Taxpayer Impact: The absence of competition for this significant contract raises concerns about whether taxpayers are receiving the best value for their investment in workforce development services.

Public Impact

Supports workforce development and job training for individuals in Michigan. Potential for cost overruns due to the incentive fee structure. Lack of competitive bidding may mean higher operational costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost-plus contract type
Lack of clear benchmark for pricing

Positive Signals

Supports critical workforce development programs
Long-term commitment to service provision

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, which is crucial for providing specialized training and preparing individuals for skilled trades. Benchmarks for similar Job Corps center operations are not readily available, making direct comparison difficult.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the service required a larger entity.

Oversight & Accountability

The contract was awarded by the Department of Labor's Employment and Training Administration. Oversight would focus on ensuring the contractor effectively operates the Job Corps center, meets performance metrics, and manages costs appropriately, especially given the cost-plus incentive fee structure.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPIF contract type.
Lack of competitive bidding limits price discovery.
Absence of small business participation.
Contract duration is substantial (886 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.6 million to ALUTIIQ PROFESSIONAL SERVICES, LLC. OPERATON OF THE FLINT / GENESEE JOB CORPS CENTER IN THE STATE OF MICHIGAN

Who is the contractor on this award?

The obligated recipient is ALUTIIQ PROFESSIONAL SERVICES, 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 $23.6 million.

What is the period of performance?

Start: 2006-10-27. End: 2009-03-31.

What specific performance metrics are tied to the incentive fee, and how are they measured to ensure value for money?

The incentive fee structure suggests performance metrics exist, likely related to student enrollment, completion rates, job placement success, and potentially cost control. Effective oversight requires transparent reporting and independent verification of these metrics to ensure the incentive truly drives desired outcomes and justifies the additional cost beyond a fixed-price contract.

Given the limited competition, what steps were taken to ensure the negotiated price was fair and reasonable?

Without a competitive bidding process, ensuring a fair and reasonable price relies heavily on the agency's negotiation capabilities and access to independent cost data. The Department of Labor should have conducted a thorough cost analysis of the contractor's proposal, potentially using historical data from similar contracts or industry benchmarks, to validate the proposed costs and fee structure.

How does the operational cost of this specific Job Corps center compare to national averages or similar centers, considering the contract's total value?

Direct comparison is challenging without specific operational data and national averages for centers of similar size and scope. The $23.6 million award over approximately three years suggests a significant investment. A detailed cost breakdown and performance report would be necessary to benchmark its efficiency and effectiveness against other Job Corps centers.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3909 ARCTIC BLVD. SUITE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,871,058

Exercised Options: $45,414,469

Current Obligation: $23,562,453

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline