Dynamic Educational Systems Inc. awarded $34.9M contract for Job Corps Center operations in Kentucky

Contract Overview

Contract Amount: $34,944,368 ($34.9M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2004-10-01

End Date: 2014-07-03

Contract Duration: 3,562 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF JOB CORPS CENTER

Place of Performance

Location: PRESTONSBURG, FLOYD County, KENTUCKY, 41653

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $34.9 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: OPERATION OF JOB CORPS CENTER Key points: 1. Contract value represents significant investment in workforce development services. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness. 3. Performance history of the contractor will be a key indicator of value. 4. This contract supports essential training and employment services for a specific region. 5. The sector involves facilities support and educational services, requiring specialized management.

Value Assessment

Rating: fair

The contract value of $34.9 million over its duration suggests a substantial investment. Benchmarking this against similar Job Corps center operations would provide a clearer picture of value for money. Without specific per-unit cost data or comparisons to other centers, it is difficult to definitively assess pricing efficiency. The Cost Plus Incentive Fee (CPIF) structure indicates an attempt to incentivize performance, but the overall value is contingent on the achieved outcomes and the contractor's ability to manage costs effectively within the incentive framework.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to compete. This level of competition is generally favorable for price discovery and can lead to more competitive pricing. The fact that it was a definitive contract awarded to a single entity implies a thorough evaluation process. The number of bidders and the specific evaluation criteria would further illuminate the strength of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces, ensuring that the government receives the best possible value for its investment in essential services.

Public Impact

Benefits individuals seeking job training and employment opportunities in Kentucky. Delivers essential services for operating and managing a Job Corps center. Geographic impact is concentrated within Kentucky, specifically the area served by the center. Workforce implications include employment for center staff and the trainees who gain skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive fee structure is not tightly managed.
Ensuring consistent quality of training and support services across the contract duration.
Dependence on a single contractor for critical workforce development services.

Positive Signals

Awarded through full and open competition, indicating potential for competitive pricing.
Cost Plus Incentive Fee structure aims to reward performance and efficiency.
Long-term contract duration allows for stable service delivery and planning.

Sector Analysis

This contract falls within the broader sector of government services, specifically focusing on workforce development and educational support. The Job Corps program is a significant federal initiative aimed at vocational training for at-risk youth. The market for operating such centers involves specialized educational and facility management providers. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers or similar government-funded training programs.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large definitive contract, it is unlikely to have been exclusively set aside for small businesses. However, the prime contractor, Dynamic Educational Systems Inc., may engage small businesses as subcontractors for various support services, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

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 program-specific regulations. Accountability is tied to meeting performance metrics outlined in the Cost Plus Incentive Fee contract. Transparency would be facilitated through contract award data and potentially through program reporting requirements.

Related Government Programs

Job Corps Program
Workforce Investment Act Programs
Federal Job Training Programs
Department of Labor Contracts

Risk Flags

Long contract duration may reduce flexibility.
CPIF structure requires careful monitoring of performance metrics.
Dependence on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $34.9 million to DYNAMIC EDUCATIONAL SYSTEMS INC. OPERATION OF JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is DYNAMIC EDUCATIONAL SYSTEMS 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 $34.9 million.

What is the period of performance?

Start: 2004-10-01. End: 2014-07-03.

What is the historical spending pattern for Job Corps center operations in Kentucky managed by Dynamic Educational Systems Inc.?

The provided data reflects a single definitive contract awarded to Dynamic Educational Systems Inc. for the operation of a Job Corps center in Kentucky, valued at $34.9 million with a duration of approximately 10 years (from Oct 2004 to July 2014). This suggests a significant, long-term investment in this specific center. To understand the broader historical spending pattern, one would need to examine prior contracts awarded to this entity for similar services, as well as other contracts for Job Corps center operations within Kentucky and nationally. Analyzing trends in contract values, durations, and the number of competitors over time would reveal patterns in federal investment and contractor engagement in this sector.

How does the per-unit cost of operating this Job Corps center compare to national averages or similar facilities?

The provided data does not include specific per-unit cost metrics (e.g., cost per trainee, cost per student-hour) required to benchmark against national averages or similar facilities. The total contract value of $34.9 million over roughly 10 years, for a single center, provides a high-level figure. To conduct a meaningful comparison, detailed operational data, including student enrollment numbers, program offerings, and facility size, would be necessary. Such data would allow for the calculation of key performance indicators and cost-effectiveness ratios that could then be compared to publicly available data for other Job Corps centers or comparable workforce development programs.

What specific performance metrics are tied to the incentive fee in this Cost Plus Incentive Fee (CPIF) contract?

The provided data indicates the contract type is Cost Plus Incentive Fee (CPIF), but it does not specify the exact performance metrics linked to the incentive component. Typically, CPIF contracts incentivize contractors to meet or exceed certain targets related to cost savings, schedule adherence, quality standards, or specific program outcomes. For a Job Corps center operation, these metrics could include trainee graduation rates, job placement rates, employer satisfaction with placed graduates, or facility maintenance standards. The 'incentive' portion of the fee would be earned based on the contractor's performance against these pre-defined metrics, encouraging them to achieve higher levels of success.

What is the track record of Dynamic Educational Systems Inc. in managing federal contracts, particularly in the education and training sector?

Dynamic Educational Systems Inc. was awarded this $34.9 million definitive contract for Job Corps center operations, indicating a significant engagement with the federal government in the education and training sector. The contract's duration (approx. 10 years) suggests a sustained relationship. To fully assess their track record, a review of their complete contract history would be beneficial, looking for other awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any instances of contract disputes or terminations. Understanding their performance on other federal contracts, especially those involving similar services or agencies, would provide a more comprehensive view of their capabilities and reliability.

What are the potential risks associated with a long-term, sole-source-like definitive contract for essential services like Job Corps operations?

While this contract was awarded under full and open competition, its definitive nature and long duration (approx. 10 years) can present certain risks. One risk is potential complacency by the contractor, assuming continued business without rigorous ongoing efforts to innovate or optimize. Another risk is the 'lock-in' effect, where switching contractors could be disruptive and costly, potentially reducing leverage for the government to enforce stringent performance standards. Furthermore, if the contractor's performance degrades over time, the long duration means taxpayers might continue to fund suboptimal services until the contract expires, unless robust oversight and termination clauses are in place.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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: 3-JC-499-51

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exodyne Inc. (UEI: 073512048)

Address: 8433 N BLACK CANYON HWY #184, PHOENIX, AZ, 85021

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

Financial Breakdown

Contract Ceiling: $34,944,368

Exercised Options: $34,944,368

Current Obligation: $34,944,368

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline