Department of Labor awards $30.5M contract for Hartford Job Corps Center operations to Education Management Corporation

Contract Overview

Contract Amount: $30,475,664 ($30.5M)

Contractor: Education Management Corporation

Awarding Agency: Department of Labor

Start Date: 2004-11-01

End Date: 2009-09-30

Contract Duration: 1,794 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE HARTFORD JOB CORPS CENTER

Place of Performance

Location: HARTFORD, HARTFORD County, CONNECTICUT, 06106

State: Connecticut Government Spending

Plain-Language Summary

Department of Labor obligated $30.5 million to EDUCATION MANAGEMENT CORPORATION for work described as: OPERATION OF THE HARTFORD JOB CORPS CENTER Key points: 1. Contract awarded to Education Management Corporation for operating the Hartford Job Corps Center. 2. The contract type is Cost Plus Incentive Fee, indicating shared risk and reward. 3. Full and open competition was conducted after excluding sources, suggesting a specific justification for limited competition. 4. The contract duration is 1794 days, spanning over 4 years. 5. The NAICS code 611519 points to 'Other Technical and Trade Schools' as the sector.

Value Assessment

Rating: fair

The contract is a Cost Plus Incentive Fee type, which can lead to cost overruns if not managed carefully. The total award amount is $30,475,664 over nearly 5 years.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.

Taxpayer Impact: The use of a Cost Plus Incentive Fee contract with limited competition warrants scrutiny to ensure taxpayer funds are used efficiently and effectively for the intended purpose of job training.

Public Impact

Job Corps centers provide vocational training and education to young people, impacting workforce development. The operation of this center directly affects students in Connecticut seeking career skills. The contract's performance could influence the success rates of participants in entering the workforce. Transparency in the exclusion of sources is important for public trust in government contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Cost Plus Incentive Fee contract type can incentivize higher costs.
No indication of small business participation.

Positive Signals

Contract supports job training and workforce development.
Long-term contract provides stability for operations.

Sector Analysis

The sector is Technical and Trade Schools, focused on vocational training. Spending benchmarks for similar contracts are not readily available without more specific data on the scope of services provided.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the contract precluded their involvement.

Oversight & Accountability

The contract was awarded by the Department of Labor's Employment and Training Administration. Oversight would focus on the effective operation of the Job Corps center and adherence to the terms of the Cost Plus Incentive Fee agreement.

Related Government Programs

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

Risk Flags

Limited competition
Cost Plus Incentive Fee contract type
Lack of small business participation
No performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $30.5 million to EDUCATION MANAGEMENT CORPORATION. OPERATION OF THE HARTFORD JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is EDUCATION MANAGEMENT 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 $30.5 million.

What is the period of performance?

Start: 2004-11-01. End: 2009-09-30.

What was the specific justification for excluding certain sources during the competition for this contract?

The provided data does not specify the reasons for excluding sources. A thorough review would require examining the contract's justification and approval documents. Understanding this rationale is crucial for assessing whether the limited competition was appropriate and if it potentially led to a higher cost for taxpayers than a fully open competition might have.

How does the performance of Education Management Corporation in operating this Job Corps center compare to industry benchmarks or previous operators?

Performance data and benchmarks are not included in the provided contract details. To assess effectiveness, one would need to review performance reports, student graduation rates, job placement statistics, and compare these metrics against established standards for Job Corps centers and similar educational institutions.

What are the potential risks associated with the Cost Plus Incentive Fee structure in this contract, and how are they mitigated?

The primary risk is that the contractor may incur higher costs than necessary if the incentive fee structure is not carefully monitored and aligned with cost-saving goals. Mitigation strategies would involve robust oversight from the Department of Labor to ensure performance targets are met efficiently and that the incentive fees are justified by actual outcomes.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1-JC-04-HARTFORD

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 221 LAUREL ROAD, VOORHEES, NJ, 08043

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $54,545,908

Exercised Options: $36,502,563

Current Obligation: $30,475,664

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline