Department of Labor awards $24.8M contract to MINACT, INC for Gerald R. Ford Job Corps Center operations

Contract Overview

Contract Amount: $24,882,524 ($24.9M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2006-05-09

End Date: 2014-10-27

Contract Duration: 3,093 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE GERALD R. FORD JOB CORPS CENTER

Place of Performance

Location: GRAND RAPIDS, KENT County, MICHIGAN, 49507

State: Michigan Government Spending

Plain-Language Summary

Department of Labor obligated $24.9 million to MINACT, INC for work described as: OPERATION OF THE GERALD R. FORD JOB CORPS CENTER Key points: 1. Contract awarded to MINACT, INC for operation of the Gerald R. Ford Job Corps Center. 2. The contract value is $24,882,524. 3. The contract was awarded under full and open competition. 4. The contract type is Cost Plus Incentive Fee. 5. The period of performance was from May 9, 2006, to October 27, 2014.

Value Assessment

Rating: fair

The contract value of $24.8M over 8 years for operating a Job Corps center appears within a reasonable range for similar educational and training service contracts. Benchmarking against other Job Corps center contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The use of a Cost Plus Incentive Fee structure aims to incentivize cost savings and performance.

Taxpayer Impact: Taxpayer funds are utilized for job training and educational services, aiming to improve workforce readiness and reduce unemployment, which can have long-term economic benefits.

Public Impact

Provides essential job training and educational services to individuals, enhancing their employability. Supports the local economy through employment at the center and procurement of goods/services. Contributes to the national goal of workforce development and reducing unemployment.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Warning Flags

Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not closely monitored.
The duration of the contract (over 8 years) requires ongoing performance evaluation.

Positive Signals

Full and open competition generally leads to better pricing.
The contract aims to provide valuable training and employment opportunities.
The location in Michigan serves a specific regional need.

Sector Analysis

The contract falls within the 'Other Technical and Trade Schools' sector, specifically related to workforce development and vocational training. Spending in this sector is crucial for equipping individuals with skills for the modern economy.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Regular performance reviews and financial audits are standard oversight mechanisms for such agreements.

Related Government Programs

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

Risk Flags

Contract duration is lengthy, requiring sustained oversight.
Cost Plus Incentive Fee contracts necessitate careful monitoring of costs and performance.
Lack of specific performance outcome data in the provided summary.
Potential for cost overruns if incentives are not well-aligned with agency goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $24.9 million to MINACT, INC. OPERATION OF THE GERALD R. FORD JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is MINACT, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2006-05-09. End: 2014-10-27.

What were the key performance metrics and outcomes achieved under this contract?

Key performance metrics likely included student enrollment, completion rates, job placement success, and participant satisfaction. The specific outcomes would be detailed in performance reports and program evaluations conducted by the Department of Labor. These metrics are crucial for assessing the effectiveness of the Job Corps program and the contractor's performance in meeting its objectives.

Were there any significant cost variances or performance issues reported during the contract's execution?

While the contract type is Cost Plus Incentive Fee, which allows for shared savings or cost overruns, specific details on variances or issues are not provided. A review of contract performance reports and any contract modifications or disputes would reveal if significant deviations from the planned cost or performance occurred. Such information is vital for understanding the contractor's efficiency and the agency's oversight effectiveness.

How did the services provided by MINACT, INC compare to the needs of the local workforce in Michigan?

The effectiveness of the services is best measured by the extent to which graduates found employment in fields aligned with local workforce demands. Analyzing post-graduation employment data, employer feedback, and the specific vocational programs offered in relation to Michigan's labor market needs would provide insight. This helps determine if the Job Corps center successfully addressed regional skill gaps.

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: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 5220 KEELE ST, JACKSON, MS, 39206

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

Financial Breakdown

Contract Ceiling: $42,048,519

Exercised Options: $41,205,147

Current Obligation: $24,882,524

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline