Labor Department's Cincinnati Job Corps Center contract awarded to Management & Training Corporation for over $21.9M

Contract Overview

Contract Amount: $21,940,459 ($21.9M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2006-10-11

End Date: 2015-04-02

Contract Duration: 3,095 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE CINCINNATI JOB CORPS CENTER

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45201

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $21.9 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE CINCINNATI JOB CORPS CENTER Key points: 1. Contract value represents significant investment in vocational training and workforce development. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long contract duration (3095 days) indicates a stable, long-term service requirement. 4. Cost Plus Incentive Fee (CPIF) contract type allows for performance-based adjustments. 5. The contract supports educational services, aligning with broader federal workforce initiatives. 6. Geographic focus on Ohio highlights regional employment and training needs.

Value Assessment

Rating: fair

The total award amount of $21.9M over approximately 8.5 years suggests an average annual spend of roughly $2.58M. Benchmarking this against similar Job Corps center operations would be necessary for a precise value-for-money assessment. The CPIF structure implies that contractor performance can influence the final cost, offering some mechanism for cost control if incentives are well-aligned with desired outcomes. Without specific performance metrics or comparisons to other centers, it's difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to more competitive pricing and a wider selection of qualified contractors. The presence of multiple bidders, though not explicitly stated in the provided data, is generally expected under this procurement method. The level of competition directly influences the government's ability to secure favorable terms and pricing.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to contractor rivalry. This method ensures that the government is not locked into a single provider, fostering a market-driven approach to service acquisition.

Public Impact

Benefits individuals seeking vocational training and job placement services in Ohio. Delivers educational and operational services for the Cincinnati Job Corps Center. Geographic impact is concentrated in Ohio, addressing regional workforce needs. Workforce implications include employment for center staff and improved employability for trainees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration could lead to contractor complacency if not actively managed.
CPIF contracts require careful monitoring of performance metrics to ensure incentives drive desired outcomes.
Reliance on a single center operation for a significant duration may limit flexibility in adapting to changing training needs.

Positive Signals

Full and open competition suggests a competitive environment that can drive efficiency.
The contract's focus on job training directly addresses federal workforce development goals.
Long-term award provides stability for service delivery and planning.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' category (NAICS 611519), which is part of the broader Education and Training Services sector. This sector is crucial for developing a skilled workforce, particularly in vocational and technical fields. The market size for such services is substantial, driven by both government initiatives and private demand for skilled labor. This specific contract represents a significant investment in operating a key facility within the federal Job Corps program, which aims to provide comprehensive training and employment services to at-risk youth.

Small Business Impact

The data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and large businesses were likely the primary bidders and awardees. While this contract may not directly benefit small businesses through set-asides, it's possible that the prime contractor, Management & Training Corporation, may engage small businesses as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to the terms and conditions of the Cost Plus Incentive Fee contract. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Long Contract Duration
Cost Plus Incentive Fee Structure
Lack of Specific Performance Metrics in Data
No Small Business Set-Aside Indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $21.9 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE CINCINNATI JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2006-10-11. End: 2015-04-02.

What is the historical spending pattern for the Cincinnati Job Corps Center contract under Management & Training Corporation?

The provided data indicates a single award of $21,940,458.80 with a duration of 3095 days (approximately 8.5 years), spanning from October 11, 2006, to April 2, 2015. This suggests a consistent, long-term funding stream for the operation of the center under this contractor. Without access to more granular historical data, such as annual expenditures or previous contract awards for this specific center, it's difficult to detail year-over-year spending fluctuations. However, the substantial total award amount points to significant and sustained federal investment in this particular Job Corps center during the specified period.

How does the performance of Management & Training Corporation on this contract compare to industry benchmarks for Job Corps center operations?

Assessing the performance of Management & Training Corporation (MTC) on this specific Cincinnati Job Corps Center contract requires detailed performance metrics that are not included in the provided data. Typically, performance would be evaluated based on trainee graduation rates, job placement success, cost efficiency, and compliance with program regulations. To compare MTC's performance against industry benchmarks, one would need access to MTC's performance reports for this contract and compare them with aggregated data from other Job Corps centers operated by different contractors, as well as any official evaluations or rankings published by the Department of Labor. Without such comparative data, a definitive assessment of MTC's performance relative to benchmarks is not possible.

What are the key risks associated with a Cost Plus Incentive Fee (CPIF) contract for operating a Job Corps center?

A primary risk with CPIF contracts is the potential for cost overruns if the incentive fee structure is not carefully designed or if performance targets are not adequately defined and monitored. While CPIF aims to incentivize efficiency and performance, there's a risk that the contractor might focus on achieving incentive targets at the expense of other critical, non-incentivized aspects of service delivery or quality. Furthermore, the government bears a significant portion of the cost risk, as the final price is not fixed. Effective oversight is crucial to ensure that the incentive fee genuinely drives desired outcomes and that costs remain reasonable and allocable to the contract's objectives. Misaligned incentives could lead to unintended consequences or inflate the overall cost to the government.

What is the typical cost per trainee for operating a Job Corps center, and how does this contract's implied cost compare?

The implied annual cost for this contract is approximately $2.58 million ($21.9M / 8.5 years). To compare this to a typical cost per trainee, we would need to know the average number of trainees served by the Cincinnati Job Corps Center during the contract period. Job Corps center operating costs can vary significantly based on location, services offered, and trainee population size. Generally, federal reports and analyses of the Job Corps program provide average cost-per-trainee figures. Without the trainee enrollment numbers for this specific center, a direct comparison is not feasible. However, historical data suggests that per-trainee costs can range from $15,000 to over $30,000 annually, depending on various factors.

What is the track record of Management & Training Corporation in operating federal contracts, particularly within the Job Corps program?

Management & Training Corporation (MTC) is a significant federal contractor with extensive experience in operating correctional facilities and Job Corps centers. They have a long history of managing government contracts, including numerous Job Corps centers across the United States. Their track record generally involves providing vocational training, education, and support services to youth and other populations. While specific performance details for each contract vary, MTC is recognized as a major player in this sector. A comprehensive review would involve examining past performance evaluations, any contract disputes or terminations, and overall client satisfaction across their portfolio of federal contracts to fully assess their track record.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,429,960

Exercised Options: $39,429,960

Current Obligation: $21,940,459

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline