Department of Labor's $16.2M Job Corps Wellness Program contract awarded to HUMANITAS, INC. for administrative support

Contract Overview

Contract Amount: $16,219,444 ($16.2M)

Contractor: Humanitas, Inc.

Awarding Agency: Department of Labor

Start Date: 2005-02-01

End Date: 2010-07-31

Contract Duration: 2,006 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TECHNICAL ASSISTANCE TO OFFICE OF JOB CORPS IN FULFILLING ITS PLANNING AND OVERSIGHT RESPONSIBILITY FOR JOB CORPS WELLNESS PROGRAM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $16.2 million to HUMANITAS, INC. for work described as: TECHNICAL ASSISTANCE TO OFFICE OF JOB CORPS IN FULFILLING ITS PLANNING AND OVERSIGHT RESPONSIBILITY FOR JOB CORPS WELLNESS PROGRAM. Key points: 1. Contract provides essential planning and oversight for the Job Corps Wellness Program. 2. Focuses on administrative management and general management consulting services. 3. Awarded via full and open competition, indicating a broad search for qualified bidders. 4. Contract duration spans over five years, suggesting a need for sustained support. 5. The contract type, Cost Plus Fixed Fee, allows for cost reimbursement plus a fixed fee. 6. The base year value is approximately $8M, with potential for growth through options.

Value Assessment

Rating: fair

The contract's value of $16.2 million over its period of performance appears reasonable for comprehensive administrative and oversight services for a national program like Job Corps. Benchmarking against similar contracts for program management and technical assistance in federal agencies would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed, plus a negotiated fee, which can sometimes lead to less price pressure than fixed-price contracts, but is often necessary for services where scope is difficult to define precisely upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which suggests that while the initial solicitation might have had some exclusions, the final award was made after a competitive process open to all eligible offerors. The presence of two bids indicates a moderate level of competition. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award, even with two bidders, suggests that taxpayers likely received a fair price, as multiple firms vied for the opportunity. However, a more robust competition with more bids could have potentially driven costs down further.

Public Impact

Benefits the Office of Job Corps by providing critical planning and oversight capabilities. Ensures the effective delivery of wellness programs to Job Corps participants nationwide. Supports the operational efficiency and strategic direction of the Job Corps program. Indirectly impacts the well-being and success of young adults enrolled in Job Corps. Services are delivered primarily in the District of Columbia, with national program oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize cost overruns if not managed tightly.
Limited competition (two bidders) may have resulted in a higher price than a more competitive scenario.
The long duration of the contract could lead to scope creep if not carefully monitored.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified contractors.
The contractor, HUMANITAS, INC., has a track record of performing federal contracts.
The contract aims to improve a vital program (Job Corps Wellness) serving young adults.

Sector Analysis

This contract falls within the Management and Consulting Services sector, specifically Administrative Management and General Management Consulting. This sector is crucial for government agencies needing specialized expertise to manage complex programs, improve efficiency, and ensure compliance. The market for these services is competitive, with numerous firms offering a wide range of capabilities. The value of this contract is moderate within the broader federal consulting landscape, which sees much larger engagements in areas like IT modernization or defense systems.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of significant subcontracting opportunities for small businesses within the provided data. This suggests that the primary focus was on securing specialized administrative and management expertise, likely from larger or more established firms capable of handling the scope and complexity of the Job Corps program.

Oversight & Accountability

Oversight is likely managed by the Employment and Training Administration (ETA) within the Department of Labor. The contract's CPFF structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is expected through regular reporting requirements and potential audits by the Department of Labor's Office of Inspector General, although specific IG jurisdiction for this contract isn't detailed.

Related Government Programs

Job Corps Program Administration
Federal Workforce Development Programs
Government Management Consulting Services
Department of Labor Administrative Support

Risk Flags

Contract Type Risk (CPFF)
Potential for Cost Overruns
Moderate Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $16.2 million to HUMANITAS, INC.. TECHNICAL ASSISTANCE TO OFFICE OF JOB CORPS IN FULFILLING ITS PLANNING AND OVERSIGHT RESPONSIBILITY FOR JOB CORPS WELLNESS PROGRAM.

Who is the contractor on this award?

The obligated recipient is HUMANITAS, 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 $16.2 million.

What is the period of performance?

Start: 2005-02-01. End: 2010-07-31.

What is the historical spending trend for technical assistance related to the Job Corps Wellness Program?

Historical spending data for technical assistance specifically tied to the Job Corps Wellness Program is not directly available in this contract's summary. However, the award of a definitive contract valued at $16.2 million from February 2005 to July 2010 indicates a significant and sustained investment in this area. This suggests that the need for such support is ongoing and has likely been a consistent requirement for the Office of Job Corps. To understand the trend, one would need to examine prior contracts for similar services, analyze annual budget allocations for Job Corps program support, and potentially look at the evolution of wellness initiatives within the program over time.

How does the per-unit cost of this contract compare to similar administrative support contracts for federal youth programs?

A direct per-unit cost comparison is challenging without defining a specific 'unit' of service (e.g., per participant, per site, per report). The contract's total value of $16.2 million over approximately 5.4 years averages around $3 million per year. This figure encompasses broad planning and oversight responsibilities. To benchmark effectively, one would need to identify contracts with similar scopes (administrative management, program oversight) for comparable federal programs, ideally those serving youth or educational initiatives. Factors like geographic scope, complexity of services, and the specific agency's overhead structure would need to be normalized. Without such detailed comparative data, it's difficult to definitively state if the per-unit cost is high or low relative to the market.

What are the key performance indicators (KPIs) used to measure the success of HUMANITAS, INC. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract focused on 'planning and oversight responsibility for Job Corps Wellness Program,' typical KPIs would likely revolve around the effectiveness of the wellness initiatives themselves, the efficiency of program planning processes, adherence to timelines, quality of reports submitted, and potentially participant feedback or outcomes related to wellness. The success of HUMANITAS, INC. would be measured against the achievement of these defined performance standards, which are usually detailed in the contract's Statement of Work (SOW) and performance work statement (PWS).

What is the track record of HUMANITAS, INC. in managing large federal contracts, particularly in the administrative support or program management domain?

HUMANITAS, INC. has been awarded this definitive contract by the Department of Labor, indicating a level of trust and capability recognized by the agency. The contract's value of $16.2 million over more than five years suggests experience in managing substantial federal engagements. While this specific contract focuses on administrative management and general consulting for the Job Corps Wellness Program, a comprehensive assessment of their track record would require reviewing their broader contract history, including past performance evaluations, any past disputes or contract terminations, and their experience with similar government clients and program types. Their ability to secure and perform on this contract implies a satisfactory track record in the federal contracting space.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific service?

The Cost Plus Fixed Fee (CPFF) contract type, while suitable for services where scope is not precisely defined, carries inherent risks. For this contract supporting the Job Corps Wellness Program, the primary risk is that HUMANITAS, INC. might have less incentive to control costs compared to a fixed-price contract, as the government reimburses allowable costs. The 'fixed fee' provides profit, but the variable cost component means the total expenditure can fluctuate. Effective management requires rigorous oversight from the Department of Labor to scrutinize all incurred costs, ensure they are reasonable, allocable, and necessary for contract performance. Without strong oversight, there's a risk of cost overruns, potentially exceeding the initial estimates and impacting the overall value for taxpayers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: DOL041RP10002

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8630 FENTON ST, SUITE 820, SILVER SPRING, MD, 20910

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $69,550,550

Exercised Options: $67,360,708

Current Obligation: $16,219,444

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline