Department of Labor's $61.6M Atlanta Job Corps Center Contract Awarded to Management & Training Corporation

Contract Overview

Contract Amount: $61,578,945 ($61.6M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2004-10-27

End Date: 2014-07-17

Contract Duration: 3,550 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE ATLANTA JOB CORPS CENTER

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30314

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $61.6 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE ATLANTA JOB CORPS CENTER Key points: 1. The contract spans nearly a decade, indicating a long-term commitment to the service provider. 2. The absence of small business participation suggests a focus on larger, established entities. 3. The cost-plus incentive fee structure aims to align contractor performance with government objectives. 4. The significant duration and value warrant close monitoring for cost-effectiveness and service quality.

Value Assessment

Rating: fair

The contract's cost-plus incentive fee structure makes direct pricing comparisons difficult without detailed performance data. The total award value of $61.6M over approximately 10 years suggests a substantial investment in the center's operation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the long duration may have limited subsequent competitive opportunities.

Taxpayer Impact: Taxpayer funds are utilized for the operation of the Atlanta Job Corps Center, providing vocational training and employment services.

Public Impact

Provides vocational training and employment services to individuals in the Atlanta area. Supports workforce development initiatives by equipping participants with job skills. The long-term nature of the contract impacts the stability of services for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may reduce flexibility and opportunities for competitive re-evaluation.
Lack of small business participation could limit diverse approaches and potentially higher costs.
Cost-plus contracts can incentivize spending if not carefully managed.

Positive Signals

Full and open competition ensures a baseline level of market vetting.
Incentive fee structure can drive performance improvements.
Long-term contract provides service continuity for participants.

Sector Analysis

The contract falls under the 'Other Technical and Trade Schools' category, which is part of the broader education and workforce development sector. Spending in this area is crucial for addressing skills gaps and promoting economic mobility.

Small Business Impact

The data indicates that small businesses were not involved in this contract, which is a missed opportunity for fostering competition and potentially leveraging specialized services. Future contracts should explore avenues for small business inclusion.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight is crucial to ensure the effective use of funds and the quality of services provided under the cost-plus incentive fee structure.

Related Government Programs

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

Risk Flags

Long contract duration may lead to complacency.
Cost-plus contracts can lead to cost overruns if not tightly managed.
Lack of small business participation.
Potential for service quality degradation over time without strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $61.6 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE ATLANTA 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 $61.6 million.

What is the period of performance?

Start: 2004-10-27. End: 2014-07-17.

What was the average annual cost per participant, and how does it compare to similar Job Corps centers?

Calculating the average annual cost per participant requires knowing the number of participants served over the contract's life. Without this data, a direct comparison is impossible. However, the total award of $61.6M over roughly 10 years suggests an average annual expenditure of approximately $6.16M. Benchmarking this against similar centers would reveal efficiency and value for money.

What specific performance metrics are tied to the incentive fee, and how has the contractor performed against them?

The effectiveness of the cost-plus incentive fee structure hinges on clearly defined performance metrics related to participant outcomes, such as job placement rates, retention, and wage levels. Without access to the contract's specific incentive clauses and performance reports, it's impossible to assess if the contractor has achieved these targets and if the incentive fee has driven desired results.

How has the long duration of this contract impacted the center's ability to adapt to changing workforce needs and technological advancements?

A nearly decade-long contract, while providing stability, can also create inertia. Adapting to evolving workforce demands and new technologies might be slower compared to shorter, more frequent contract cycles. This could potentially limit the relevance of the training provided if proactive adjustments aren't rigorously managed through contract modifications or performance reviews.

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: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 NORTH MARKETPLACE DR, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $61,578,945

Exercised Options: $61,578,945

Current Obligation: $61,578,945

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline