Department of Labor's $54.3M contract for Job Corps Center operations shows fair value with a single awardee

Contract Overview

Contract Amount: $54,343,875 ($54.3M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2005-05-01

End Date: 2010-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $29.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF RED ROCK JOB CORPS CENTER

Place of Performance

Location: LOPEZ, SULLIVAN County, PENNSYLVANIA, 18628

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $54.3 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF RED ROCK JOB CORPS CENTER Key points: 1. The contract's value appears reasonable given the duration and scope of operating a Job Corps center. 2. A single awardee suggests limited competition, potentially impacting price negotiation. 3. The cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 4. This contract supports workforce development and vocational training for young adults. 5. The geographic impact is concentrated in Pennsylvania, serving local communities. 6. The contractor has a history of managing similar government service contracts.

Value Assessment

Rating: fair

The contract's total value of $54.3 million over five years averages approximately $10.86 million annually. This figure seems within a reasonable range for operating a Job Corps center, which involves significant infrastructure, staffing, and program delivery costs. Benchmarking against similar Job Corps center contracts would provide a more precise value-for-money assessment, but initial indications suggest a fair price point for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. However, the data shows only one award was made, suggesting that while the competition was open, only one bidder met the requirements or was selected. This scenario can sometimes lead to less aggressive pricing compared to contracts with multiple competitive bids.

Taxpayer Impact: While the competition was open, the single award limits the direct price pressure that multiple competing bids would typically exert, potentially resulting in a slightly higher cost for taxpayers than if several strong contenders had vied for the contract.

Public Impact

Benefits young adults in Pennsylvania by providing vocational training and job placement services. Delivers comprehensive educational and career training programs, including academic instruction and hands-on skills development. Geographic impact is focused on the region served by the Red Rock Job Corps Center in Pennsylvania. Implications for the local workforce include training for in-demand occupations and potential job creation. Supports the federal government's mission to reduce poverty and unemployment among disadvantaged youth.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if performance incentives are not carefully managed.
Risk of contractor not meeting all performance metrics, impacting service quality for trainees.
Limited competition may reduce the incentive for the contractor to innovate or reduce costs over time.

Positive Signals

Cost-plus-incentive-fee structure encourages contractor to meet performance targets.
Full and open competition, even with a single award, ensures a baseline level of vetting.
Contract duration provides stability for program operations and trainee continuity.

Sector Analysis

The operation of Job Corps centers falls within the broader education and workforce development sector, specifically under vocational and technical training services. This contract represents a significant investment in human capital development. Comparable spending benchmarks would involve analyzing other large-scale training and education service contracts awarded by federal agencies, particularly those focused on youth employment and skills acquisition. The market for such services is competitive, with several large non-profit and for-profit organizations specializing in workforce development.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract (ss: false, sb: false). There is no explicit small business set-aside. Subcontracting opportunities for small businesses would depend on the prime contractor's procurement practices and the nature of the services required. Without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is likely minimal unless the prime contractor actively seeks out small business partners for specialized services.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Labor's Employment and Training Administration. Accountability measures are embedded within the Cost Plus Incentive Fee (CPIF) structure, which ties contractor payment to performance outcomes. Transparency is generally maintained through federal contract databases, though specific performance metrics and detailed financial reporting may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
YouthBuild Program
Federal Job Training Programs
Vocational Rehabilitation Services

Risk Flags

Single award despite full and open competition may indicate limited market capacity or specific technical requirements.
Cost-plus-incentive-fee contracts require robust oversight to ensure cost control and performance alignment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $54.3 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF RED ROCK 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 $54.3 million.

What is the period of performance?

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

What is the historical spending trend for the operation of the Red Rock Job Corps Center?

Analyzing historical spending for the Red Rock Job Corps Center requires accessing prior contract awards for this specific facility. The provided data covers a single definitive contract from May 2005 to April 2010 with a total value of $54.3 million. To understand spending trends, one would need to examine previous contracts awarded to the same or different operators for this center, looking at annual expenditures, contract modifications, and any significant fluctuations. Without this historical data, it's difficult to ascertain if the $54.3 million represents an increase, decrease, or stable level of investment compared to prior periods. Trends could also be influenced by changes in program scope, participant numbers, or economic conditions affecting federal funding priorities.

How does the contractor's performance on this contract compare to other Job Corps center operators?

Assessing the contractor's performance (Management & Training Corporation) on this specific Red Rock Job Corps Center contract requires access to performance evaluation reports, quality assurance reviews, and potentially data on key performance indicators (KPIs) such as trainee graduation rates, job placement success, and employer satisfaction. These reports are often internal to the awarding agency (Department of Labor) and may not be fully public. To compare with other operators, one would need to gather similar performance data for other Job Corps centers managed by different contractors. Benchmarking would involve comparing metrics like cost per trainee, placement rates in high-demand fields, and trainee retention. A CPIF contract structure implies performance targets were set, and the incentive fees paid would reflect the degree to which these targets were met or exceeded.

What are the primary risks associated with operating a Job Corps center under a Cost Plus Incentive Fee (CPIF) contract?

The primary risks associated with operating a Job Corps center under a CPIF contract involve balancing cost control with performance achievement. For the government, there's a risk that the contractor might incur higher costs than anticipated if the incentive structure isn't perfectly aligned with desired outcomes or if unforeseen operational challenges arise. The contractor bears the risk of not achieving performance targets, which would reduce their profit margin. A key risk is ensuring that the 'incentive' portion effectively drives desired behaviors without encouraging unnecessary spending or cutting corners on essential services to meet targets. Effective oversight is crucial to monitor costs, validate performance data, and ensure the contractor is acting in the government's best interest while delivering quality training and support to participants.

What is the typical cost structure for operating a Job Corps center of this size?

The cost structure for operating a Job Corps center typically includes personnel (instructors, counselors, administrative staff), facility operations and maintenance, curriculum development and delivery, student support services (housing, meals, transportation, health services), outreach and recruitment, and administrative overhead. Under a CPIF contract like this one, the government pays allowable costs plus a fixed fee, with the fee adjusted based on performance against pre-defined targets. The total contract value of $54.3 million over five years ($10.86 million annually) suggests significant investment in these areas. Detailed cost breakdowns would reveal the proportion allocated to direct training versus support services and administrative costs, which can vary based on the center's location, size, and specific program offerings.

How has the Department of Labor utilized full and open competition for Job Corps center contracts historically?

The Department of Labor (DOL) generally utilizes full and open competition for awarding Job Corps center contracts to ensure a broad range of qualified providers can compete, fostering innovation and potentially better pricing. However, the actual number of awards resulting from such competitions can vary. Factors influencing the number of awards include the specific requirements of the solicitation, the number of capable bidders responding, and the strategic decisions made during the evaluation process. While full and open competition is the preferred method, DOL may occasionally use other contracting approaches like sole-source or limited competition under specific circumstances, such as when only one provider possesses unique capabilities or when urgency dictates. Historical data on DOL's contracting practices would reveal the prevalence of full and open competition versus other methods for Job Corps centers.

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: 1

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: $805,510,564

Exercised Options: $792,737,017

Current Obligation: $54,343,875

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline