Department of Labor's $38.2M contract for operational support awarded to RES-CARE, INC

Contract Overview

Contract Amount: $38,188,762 ($38.2M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2004-11-01

End Date: 2009-12-31

Contract Duration: 1,886 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: MIAMI JCC OPNS,OACTS

Place of Performance

Location: OPA LOCKA, MIAMI-DADE County, FLORIDA, 33055

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $38.2 million to RES-CARE, INC for work described as: MIAMI JCC OPNS,OACTS Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract type, Cost Plus Incentive Fee, can incentivize contractor efficiency. 3. A duration of 1886 days indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized training services. 5. The contract was awarded in Florida, potentially impacting the local workforce and economy.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Incentive Fee structure aims to align contractor costs with performance, but the ultimate value depends heavily on the achieved outcomes and the effectiveness of the incentive mechanisms. Further analysis would require understanding the specific services rendered and their impact on the intended beneficiaries.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a reasonable level of competition for this requirement. This competitive process is generally expected to lead to more favorable pricing and better service offerings for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process which typically drives down costs and ensures the government receives the best value for its investment.

Public Impact

Individuals seeking employment and training services are the primary beneficiaries. The contract supports operational and technical services, likely related to workforce development programs. The geographic impact is concentrated in Florida, where the services are delivered. Potential workforce implications include job creation for service delivery personnel and enhanced employability for program participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
The Cost Plus Incentive Fee structure requires careful monitoring to ensure incentives are effective and costs are controlled.
The long contract duration could lead to potential cost overruns if not managed diligently.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
The presence of multiple bidders suggests market interest and potential for competitive pricing.
The contract aims to provide essential operational and technical support, addressing a clear government need.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector (NAICS 611519), which is part of the broader education and training services industry. This sector encompasses institutions providing vocational and technical training. Comparable spending in this sector can vary widely based on the specific services offered, but government contracts for workforce development and training are common across various agencies.

Small Business Impact

The provided data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This means the contract was not specifically reserved for small businesses. While there's no direct indication of subcontracting requirements, the absence of small business participation goals suggests that opportunities for small businesses might be limited unless they are prime contractors or choose to subcontract independently.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures would be tied to the Cost Plus Incentive Fee structure, performance metrics, and contract deliverables. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Workforce Investment Act Programs
Job Corps
Adult Education and Family Literacy Programs
State Workforce Agencies

Risk Flags

Long contract duration may increase risk of cost escalation.
CPIF contracts require diligent oversight to ensure incentives are effective.
Lack of specific performance data limits value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $38.2 million to RES-CARE, INC. MIAMI JCC OPNS,OACTS

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 $38.2 million.

What is the period of performance?

Start: 2004-11-01. End: 2009-12-31.

What specific operational and technical services were provided under this contract?

The contract data identifies the NAICS code as 611519, 'Other Technical and Trade Schools.' This suggests the services likely involved the provision of vocational training, technical education, or operational support for such programs. Specific services could include curriculum development, instructor support, facility management, student support services, or administrative functions related to training delivery. Without more detailed contract documentation, the precise nature of the 'MIAMI JCC OPNS,OACTS' (Miami Job Corps Center Operations, Activities) remains somewhat generalized, but it points towards supporting the day-to-day functioning and educational mission of a Job Corps center or similar vocational training facility.

How does the $38.2 million total contract value compare to similar government contracts for operational support in the education and training sector?

Comparing the $38.2 million total value requires context regarding the scope and duration. This contract spanned approximately 5 years (November 2004 to December 2009), making the average annual value around $7.6 million. For operational support of large-scale training programs like Job Corps centers, this value is within a reasonable range, especially considering the comprehensive nature of 'operations and activities.' However, without specific benchmarks for similar Job Corps centers or other vocational training initiatives, a precise value-for-money assessment is difficult. Factors like geographic location, student population size, and the complexity of services delivered significantly influence contract values in this sector.

What are the key performance indicators (KPIs) associated with this Cost Plus Incentive Fee (CPIF) contract, and how were they measured?

The provided data does not specify the Key Performance Indicators (KPIs) for this Cost Plus Incentive Fee (CPIF) contract. In a CPIF contract, the government and contractor agree on target costs, target profits, and incentive fee formulas based on achieving certain performance objectives. These objectives could relate to student completion rates, job placement success, cost savings, or adherence to schedules. The 'incentive' aspect means the final profit (or fee) paid to the contractor varies based on how well they meet or exceed these pre-defined KPIs. Without access to the contract's Statement of Work (SOW) and the specific incentive clauses, it's impossible to detail the exact KPIs or measurement methodologies used.

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

RES-CARE, INC. has a history of managing government contracts, including those related to workforce development and training. As indicated by this contract with the Department of Labor, the company has experience in providing operational and support services for programs like Job Corps. Analyzing their broader track record would involve reviewing other contracts they have held, their performance ratings (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or successes. A comprehensive review would assess their ability to meet performance requirements, manage costs effectively, and comply with federal regulations across multiple engagements.

How has federal spending on operational support for workforce training programs evolved since this contract was awarded in 2004?

Federal spending on operational support for workforce training programs has seen fluctuations and shifts in focus since 2004. The landscape has been influenced by economic conditions, legislative changes (like the Workforce Innovation and Opportunity Act - WIOA), and evolving demands for skills in the labor market. While specific figures for 'operational support' are hard to isolate, overall federal investment in workforce development has remained a priority, albeit with varying levels of funding and program structures. There has been a continued emphasis on performance-based contracting and aligning training with in-demand industries, suggesting a move towards more outcome-oriented support models compared to the era when this contract was initiated.

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

Solicitation ID: MIAMI JCC

Offers Received: 3

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

Financial Breakdown

Contract Ceiling: $38,217,974

Exercised Options: $38,217,974

Current Obligation: $38,188,762

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline