Labor Department awards $38.3M contract to Adams and Associates for Gadsden Job Corps Center operations

Contract Overview

Contract Amount: $38,286,265 ($38.3M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2004-10-01

End Date: 2009-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATE THE GADSDEN JOB CORPS CENTER

Place of Performance

Location: GADSDEN, ETOWAH County, ALABAMA, 35901

State: Alabama Government Spending

Plain-Language Summary

Department of Labor obligated $38.3 million to ADAMS AND ASSOCIATES INC for work described as: OPERATE THE GADSDEN JOB CORPS CENTER Key points: 1. The contract, valued at $38.3 million over five years, aims to operate the Gadsden Job Corps Center. 2. Adams and Associates Inc. secured this contract through full and open competition. 3. The contract type is Cost Plus Incentive Fee, suggesting a focus on performance and cost control. 4. The sector is primarily education and training, specifically 'Other Technical and Trade Schools'.

Value Assessment

Rating: good

The contract value of $38.3 million over 5 years averages to approximately $7.66 million annually. This appears reasonable for operating a Job Corps center, though specific benchmarks for similar facilities would provide a more precise comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for essential services like job training.

Public Impact

Provides essential job training and career development services to young adults. Supports local workforce development by equipping individuals with marketable skills. Contributes to the economic well-being of the Gadsden, Alabama region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Incentive Fee contract type if not managed closely.
Dependence on a single contractor for a critical service.

Positive Signals

Full and open competition ensures a competitive bidding process.
Long-term contract provides stability for service delivery.
Focus on job training addresses workforce needs.

Sector Analysis

The contract falls within the education and training sector, specifically 'Other Technical and Trade Schools'. Spending in this area supports federal workforce development initiatives. Benchmarks for similar Job Corps center operations would be relevant for detailed cost analysis.

Small Business Impact

The data indicates this contract was not set aside for small businesses and that the awardee, Adams and Associates Inc., is not listed as a small business. Therefore, there is no direct small business participation evident in this specific award.

Oversight & Accountability

The Department of Labor's Employment and Training Administration oversees this contract. Standard oversight mechanisms for cost-plus contracts would apply, focusing on performance metrics, cost tracking, and adherence to program goals.

Related Government Programs

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

Risk Flags

Cost Plus Incentive Fee (CPIF) contract type can lead to higher costs if not managed effectively.
Lack of small business participation in this specific award.
Potential for contractor performance issues impacting service delivery.
Long contract duration requires ongoing vigilance for contract compliance and effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $38.3 million to ADAMS AND ASSOCIATES INC. OPERATE THE GADSDEN JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES 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 $38.3 million.

What is the period of performance?

Start: 2004-10-01. End: 2009-09-30.

What are the specific performance metrics and incentive structures within the Cost Plus Incentive Fee (CPIF) arrangement, and how do they align with the goals of the Job Corps program?

The CPIF structure likely ties a portion of the contractor's fee to achieving specific performance targets related to student graduation rates, job placement success, and cost control. Detailed metrics would be outlined in the contract's statement of work and incentive clauses. Effective alignment ensures the contractor is motivated to maximize both program outcomes and efficient resource utilization, directly benefiting the students and taxpayers.

How does the annual cost of operating this specific Job Corps center compare to national averages or similar centers, considering the services provided and student population?

A comparative analysis against national averages for Job Corps center operations, adjusted for regional cost of living and program scope, is crucial. This involves examining per-student costs, facility maintenance expenses, and program delivery costs. Such a benchmark would reveal if the $7.66 million annual expenditure represents efficient resource allocation or potential areas for cost savings without compromising service quality.

What mechanisms are in place to ensure accountability and transparency in the use of funds, particularly given the CPIF structure which allows for variable contractor fees?

Accountability is typically managed through rigorous financial audits, regular performance reviews against contract milestones, and transparent reporting requirements. The CPIF structure necessitates close monitoring of costs and performance data by the contracting officer's representative. Any deviations or potential cost overruns must be justified and approved, ensuring that taxpayer funds are used appropriately and that the contractor is incentivized to manage costs effectively.

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: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD., RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $39,146,622

Exercised Options: $38,286,265

Current Obligation: $38,286,265

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline