Department of Labor's $63M Job Corps Center contract awarded to RES-CARE, INC. shows long-term commitment

Contract Overview

Contract Amount: $63,074,654 ($63.1M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2004-03-01

End Date: 2014-08-15

Contract Duration: 3,819 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATE THE HOMESTEAD JOB CORPS CENTER

Place of Performance

Location: HOMESTEAD, MIAMI-DADE County, FLORIDA, 33033

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $63.1 million to RES-CARE, INC for work described as: OPERATE THE HOMESTEAD JOB CORPS CENTER Key points: 1. The contract's duration of over 10 years suggests a stable, long-term need for the services provided. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The cost-plus incentive fee structure aims to align contractor performance with government objectives. 4. The contract's value of $63 million over its life points to significant investment in workforce development. 5. The absence of small business set-aside flags suggests the primary contractor is likely a larger entity. 6. The contract's focus on operating a Job Corps center highlights a commitment to youth training and employment.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable Job Corps center operating contracts. The cost-plus incentive fee (CPIF) structure is common for services where performance can be measured, but the total cost of $63 million over nearly 12 years indicates a substantial investment. Without detailed breakdowns of operational costs, overhead, and direct service delivery, a precise value-for-money assessment is difficult. However, the long duration implies a perceived value by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. With 6 bidders identified, this indicates a reasonable level of competition for operating the Homestead Job Corps Center. The competitive process should have theoretically driven pricing towards market rates and encouraged efficiency among bidders.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and potentially leading to more cost-effective service delivery compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the young individuals participating in the Job Corps program at the Homestead center, receiving vocational training and support services. The contract delivers essential services for operating and managing the Job Corps center, including training, housing, and career placement assistance. The geographic impact is focused on Homestead, Florida, providing local economic benefits through employment and services. Workforce implications include direct employment for center staff and indirect benefits for trainees entering the workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency if not actively managed.
Cost-plus contracts can incentivize spending if not carefully monitored for necessity.
Performance metrics and incentive alignment need rigorous oversight to ensure value.
Dependence on a single contractor for over a decade may limit future flexibility.

Positive Signals

Full and open competition suggests a robust initial selection process.
The CPIF structure incentivizes meeting or exceeding performance goals.
Long-term contract indicates stable service delivery and agency satisfaction.
Focus on Job Corps aligns with federal workforce development priorities.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' (NAICS 611519) sector, specifically related to workforce development and vocational training. The federal government invests significantly in Job Corps centers nationwide to provide education and job training to at-risk youth. Comparable spending benchmarks would involve analyzing the operating costs of other Job Corps centers, which can vary based on size, location, and services offered. The market for operating such centers is typically comprised of educational service providers and non-profit organizations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all responsible sources, likely favoring larger organizations with the capacity to manage a comprehensive Job Corps center. There is no explicit information on subcontracting requirements, but large prime contractors are often encouraged or required to engage small businesses for certain services, which would need further investigation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and monitoring of key performance indicators related to student success and center operations. The CPIF structure implies specific metrics tied to incentives, requiring diligent tracking. Transparency would depend on the agency's reporting practices and the public availability of performance data.

Related Government Programs

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

Risk Flags

Long-term contract duration requires sustained oversight.
Cost-plus contracts necessitate careful monitoring of expenditures.
Performance metrics and incentive alignment are critical for value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $63.1 million to RES-CARE, INC. OPERATE THE HOMESTEAD JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $63.1 million.

What is the period of performance?

Start: 2004-03-01. End: 2014-08-15.

What was the average annual cost to operate the Homestead Job Corps Center under this contract?

The total contract value was $63,074,654 over a period of approximately 11 years and 5 months (March 1, 2004, to August 15, 2014). This averages out to roughly $5.5 million per year. However, this is a blended average, and actual annual spending likely varied based on the Cost Plus Incentive Fee (CPIF) structure, which adjusts costs based on performance and allows for incentive payments. Without detailed annual financial reports, it's difficult to ascertain precise year-over-year operational costs and how they fluctuated relative to performance targets.

How did RES-CARE, INC.'s performance compare to the incentive targets outlined in the contract?

The provided data does not include specific performance metrics or incentive targets for RES-CARE, INC. The contract type is 'COST PLUS INCENTIVE FEE' (pt: 'COST PLUS INCENTIVE FEE'), which indicates that financial incentives were tied to achieving certain performance goals. To assess how well RES-CARE performed against these targets, one would need access to the contract's Statement of Work (SOW), performance work statements (PWS), and subsequent performance evaluation reports or contract modifications that detail incentive payouts or penalties. These details are typically found in agency contract files and performance management systems.

What are the typical cost drivers for operating a Job Corps center of this size?

Operating a Job Corps center involves several key cost drivers. These typically include personnel costs (salaries, benefits for instructors, counselors, administrative staff, security, maintenance), student support services (housing, meals, transportation, health services, stipends), training materials and equipment, facility maintenance and utilities, and administrative overhead. For a center serving potentially hundreds of students, the scale of these services significantly impacts the overall budget. The CPIF structure suggests that costs related to training quality, student placement rates, and operational efficiency were likely key areas for incentive alignment.

Were there any significant contract modifications or overruns during the life of this contract?

The provided summary data does not detail contract modifications, change orders, or specific overrun information. A contract valued at $63 million over nearly 12 years is substantial, and it is common for such long-term agreements to undergo modifications for various reasons, such as changes in program requirements, economic price adjustments, or scope adjustments. To determine if there were significant modifications or overruns, a review of the contract's official modification history (e.g., SF30 forms) and associated financial records maintained by the Department of Labor would be necessary.

How does the $63 million total contract value compare to other Job Corps center operating contracts?

The $63 million total contract value over approximately 11.5 years equates to an average annual cost of roughly $5.5 million. This figure needs to be contextualized by the size and scope of the Homestead Job Corps Center (e.g., student capacity, range of vocational programs offered). Job Corps centers vary significantly in size and operational complexity. Some centers might operate on budgets ranging from $3 million to over $10 million annually, depending on these factors. Therefore, $5.5 million annually appears to be within a moderate range for a Job Corps center, but a direct comparison requires detailed data on the operational scale of other centers.

What is the track record of RES-CARE, INC. in managing federal contracts, particularly in the education or workforce development sector?

RES-CARE, INC. has a history of managing federal contracts, including those related to workforce development and correctional education. Information available through federal procurement databases (like FPDS or SAM.gov) would detail their contract history, including awards, performance ratings (if available), and any past performance issues or awards. Their experience operating the Homestead Job Corps Center for over a decade suggests a sustained capability in this specific area. Further analysis would involve examining their portfolio of other federal contracts to gauge their overall performance and specialization.

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: 6

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carestream Health, Inc. (UEI: 244882650)

Address: 10140 LINN STATION RD, LOUISVILLE, KY, 40223

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

Financial Breakdown

Contract Ceiling: $63,074,654

Exercised Options: $63,074,654

Current Obligation: $63,074,654

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline