Labor Department's $40.4M Batesville JCC contract awarded to MINACT, INC. for vocational training

Contract Overview

Contract Amount: $40,359,395 ($40.4M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2005-05-01

End Date: 2010-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATE BATESVILLE JCC

Place of Performance

Location: BATESVILLE, PANOLA County, MISSISSIPPI, 38606

State: Mississippi Government Spending

Plain-Language Summary

Department of Labor obligated $40.4 million to MINACT, INC for work described as: OPERATE BATESVILLE JCC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee, which can incentivize cost control but also carries inherent risk. 3. The duration of 1825 days (5 years) indicates a long-term commitment for vocational training services. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized trade schools, a niche service area. 5. The contract was awarded to MINACT, INC., whose performance history and track record will be crucial for assessing value. 6. The absence of small business set-aside flags suggests the primary awardee is not a small business, and subcontracting opportunities should be reviewed.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Incentive Fee contract is challenging without detailed cost breakdowns and performance metrics. The total award amount of $40.4 million over five years averages to approximately $8.08 million annually. This figure needs to be compared against similar vocational training contracts for correctional facilities or workforce development programs to assess if it represents a reasonable investment. The incentive fee structure introduces variability, making a definitive value assessment contingent on MINACT, INC.'s ability to meet performance targets efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of three bidders (no=3) suggests a moderate level of competition for this specialized service. While full and open competition is generally preferred for ensuring fair pricing and access, the specific number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was offered broadly, potentially leading to a more cost-effective outcome than a sole-source award. The competitive process aims to secure the best value for the government's investment in vocational training.

Public Impact

The primary beneficiaries are individuals within the Batesville Jurisdiction Correctional Complex (JCC) who will receive vocational training. The services delivered are expected to enhance the employability and reduce recidivism rates of inmates through skill development. The geographic impact is localized to the Batesville JCC, serving its inmate population. Workforce implications include potential job creation for instructors and support staff employed by MINACT, INC. and potential reintegration of trained individuals into the civilian workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to cost overruns if not managed tightly.
The long duration of the contract may reduce flexibility to adapt to changing training needs or market demands.
Dependence on a single contractor for a critical service like inmate rehabilitation carries inherent risk.
The specific nature of vocational training for correctional facilities requires specialized expertise, and contractor performance is key.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The incentive fee structure, if structured effectively, can drive contractor performance and efficiency.
The contract addresses a critical need for inmate rehabilitation and workforce reintegration.
The long-term nature of the contract provides stability for service delivery and program continuity.

Sector Analysis

The vocational training sector, particularly within correctional facilities, is a specialized niche. This contract falls under the broader 'Other Technical and Trade Schools' NAICS code (611519). The market for such services is driven by government agencies seeking to fulfill rehabilitation mandates and reduce recidivism. Comparable spending benchmarks would involve analyzing other federal, state, and local contracts for inmate education and vocational programs, considering factors like inmate population size, training duration, and types of skills taught.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). This suggests that the primary awardee, MINACT, INC., is likely a larger entity, or that the nature of the requirement did not lend itself to a small business set-aside. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract, which could still provide some benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to contract terms and conditions. The Inspector General's office may also have jurisdiction for investigating fraud, waste, or abuse. Transparency would depend on the agency's public reporting practices regarding contract performance and expenditures.

Related Government Programs

Federal Bureau of Prisons Vocational Training Programs
Department of Education Workforce Development Grants
State Department of Corrections Reentry Programs
Department of Justice Second Chance Act Programs

Risk Flags

Cost Plus Incentive Fee contract type requires careful monitoring of costs and performance.
Long contract duration may limit adaptability to evolving needs.
Effectiveness of vocational training in reducing recidivism needs clear metrics and tracking.
Contractor performance history is critical for assessing risk and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $40.4 million to MINACT, INC. OPERATE BATESVILLE JCC

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 $40.4 million.

What is the period of performance?

Start: 2005-05-01. End: 2010-04-30.

What is the track record of MINACT, INC. in delivering similar vocational training services, particularly within correctional settings?

Assessing the track record of MINACT, INC. is crucial for understanding the potential success of this contract. A review of past performance evaluations, contract awards, and any documented issues or successes in similar government contracts would provide insight. Specifically, their experience with the Cost Plus Incentive Fee (CPIF) contract type and their ability to manage costs while meeting performance targets are key indicators. Information on their capacity to deliver specialized vocational training relevant to inmate rehabilitation and subsequent workforce reintegration would also be vital. Without specific performance data, it is difficult to definitively gauge their suitability beyond the initial award.

How does the average annual cost of this contract compare to similar vocational training programs for correctional facilities?

The average annual cost of this contract is approximately $8.08 million ($40.4 million / 5 years). To benchmark this value, one would need to identify comparable federal, state, or local contracts for vocational training within correctional institutions. Key comparison points would include the number of inmates served, the duration and intensity of training, the types of vocational skills offered, and the contract type (e.g., fixed-price, cost-reimbursement). If similar contracts for comparable populations and services are significantly lower, it could indicate potential overpricing or inefficiencies in this specific award. Conversely, if it aligns with or is lower than benchmarks, it suggests reasonable value.

What are the primary risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this specific service?

The primary risks associated with the CPIF contract type for vocational training at the Batesville JCC revolve around cost control and performance alignment. While the incentive fee aims to motivate the contractor (MINACT, INC.) to exceed performance targets and manage costs efficiently, poorly defined targets or metrics can lead to unintended consequences. There's a risk that the government may pay more than necessary if the incentives are not structured optimally or if the contractor focuses on easily achievable incentives at the expense of more impactful training outcomes. Furthermore, the 'cost plus' element inherently means the government bears the risk of allowable costs, requiring robust oversight to ensure costs are reasonable and allocable to the contract.

What is the expected effectiveness of the vocational training provided under this contract in reducing recidivism rates?

The effectiveness of the vocational training in reducing recidivism rates is a critical outcome measure that is not explicitly detailed in the provided data. Success would depend on several factors: the relevance and quality of the skills taught to current labor market demands, the duration and intensity of the training programs, the support provided to inmates during and after their release (e.g., job placement assistance), and the overall rehabilitation environment within the correctional facility. Data from similar programs, both within the Federal Bureau of Prisons and state systems, would be needed to establish a baseline expectation for recidivism reduction. The contract's incentive structure should ideally be tied to measurable reductions in recidivism or increases in post-release employment.

How has the Department of Labor's spending on vocational training for correctional facilities evolved over the past five years?

To analyze the evolution of the Department of Labor's spending on vocational training for correctional facilities over the past five years, one would need access to historical contract data and budget allocations. This would involve searching federal procurement databases (like FPDS or USASpending.gov) for contracts with similar NAICS codes and service descriptions awarded by the Department of Labor or related agencies (e.g., Federal Bureau of Prisons, if applicable). Trends could indicate whether spending in this area is increasing, decreasing, or remaining stable, and whether there's a shift towards different types of training or contracting mechanisms. This context would help determine if the $40.4 million award represents a significant investment or a continuation of established spending patterns.

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, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,395,052

Exercised Options: $40,395,052

Current Obligation: $40,359,395

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline