Department of Labor's Glenmont Job Corps Center contract awarded to Adams and Associates Inc. for $30.3M

Contract Overview

Contract Amount: $30,294,634 ($30.3M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2005-01-01

End Date: 2010-12-31

Contract Duration: 2,190 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE GLENMONT JOB CORPS CENTER

Place of Performance

Location: GLENMONT, ALBANY County, NEW YORK, 12077

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $30.3 million to ADAMS AND ASSOCIATES INC for work described as: OPERATION OF THE GLENMONT JOB CORPS CENTER Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 2. With a duration of 2190 days, this represents a significant long-term investment in vocational training. 3. The award was made under full and open competition, suggesting a robust market for these services. 4. The North American Industry Classification System (NAICS) code 611519 indicates a focus on specialized technical and trade schools. 5. The contract's value of $30.3 million over five years warrants careful performance monitoring to ensure value for money. 6. The absence of small business set-aside or subcontracting requirements may limit opportunities for smaller entities in this sector.

Value Assessment

Rating: fair

The contract value of $30.3 million over approximately five years for operating a Job Corps center appears within a reasonable range for such services. However, without specific benchmarks for the cost per student or per training hour, a definitive value-for-money assessment is challenging. The cost-plus-incentive-fee (CPIF) pricing structure suggests an effort to control costs while incentivizing performance, but the actual cost efficiency will depend heavily on the contractor's management and the effectiveness of the incentive clauses. Comparing this to other Job Corps center operations would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of three bidders (no=3) suggests a competitive environment, which typically leads to better pricing and service offerings for the government. This level of competition is generally favorable for ensuring that taxpayer dollars are used efficiently and that the selected contractor offers the best value proposition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and improving the quality of services through market forces. It ensures that the government is not locked into a single provider and can leverage the best available options.

Public Impact

The primary beneficiaries are the individuals enrolled in the Glenmont Job Corps Center, who receive vocational training and support services. The contract delivers essential services related to workforce development and job readiness for young adults. The geographic impact is centered in New York (st=NY, sn=NEW YORK), providing local training opportunities. Workforce implications include the creation of jobs for instructors, administrators, and support staff at the center, as well as the development of a skilled labor pool for the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive clauses are not effectively structured or monitored.
Risk of service quality degradation if contractor prioritizes cost savings over training effectiveness.
Limited visibility into the specific performance metrics driving the incentive fees.
Lack of explicit small business subcontracting goals could limit broader economic impact.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Cost-plus-incentive-fee structure designed to reward performance and cost control.
Long contract duration (2190 days) suggests stability and commitment to the program.
Focus on vocational training addresses critical workforce development needs.

Sector Analysis

The operation of Job Corps centers falls within the broader education and training services sector, specifically under technical and trade schools. This sector is crucial for addressing skills gaps and preparing individuals for employment in various industries. The market for such services is often characterized by government contracts, as federal and state agencies fund a significant portion of vocational training programs. Benchmarks for similar contracts would involve comparing the cost per student, graduation rates, and job placement success of other Job Corps centers or comparable workforce development initiatives.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions (sb=false) or explicit small business subcontracting requirements (ss=false). This means that opportunities for small businesses to participate as prime contractors or subcontractors in delivering these services are not guaranteed by the contract terms. The absence of such provisions may limit the direct economic benefit to the small business ecosystem in this specific instance, although the prime contractor may still engage small businesses as vendors or suppliers.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration (sa=Employment and Training Administration). Mechanisms likely include regular performance reviews, financial audits, and monitoring of key performance indicators related to student enrollment, training completion, and job placement. The CPIF structure itself serves as an accountability measure, linking contractor compensation to performance outcomes. Transparency would be enhanced through contract award data and potentially through public reporting on Job Corps program performance.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Education Contracts

Risk Flags

Potential for cost overruns
Performance metric ambiguity
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $30.3 million to ADAMS AND ASSOCIATES INC. OPERATION OF THE GLENMONT JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES 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 $30.3 million.

What is the period of performance?

Start: 2005-01-01. End: 2010-12-31.

What is the historical spending pattern for the operation of the Glenmont Job Corps Center?

The provided data indicates a single definitive contract awarded to Adams and Associates Inc. for the operation of the Glenmont Job Corps Center, spanning from January 1, 2005, to December 31, 2010, with a total value of $30,294,634. This suggests that for the period covered by this specific contract, Adams and Associates Inc. was the sole provider. To understand the broader historical spending pattern, one would need to examine contracts preceding and succeeding this period, potentially involving different contractors or different contract types. Information on prior or subsequent contracts would reveal trends in contract values, duration, and the number of competing vendors over time, offering a more comprehensive view of the government's investment in this center's operations.

How does the cost per student for this contract compare to national averages for Job Corps centers?

The provided data does not include the number of students served or the total operational costs broken down per student. Therefore, a direct comparison of the cost per student for the Glenmont Job Corps Center contract to national averages is not possible with the given information. To perform this analysis, one would need access to the total contract value ($30.3 million), the contract duration (2190 days, or approximately 5 years), and the average daily or annual student census for the center during the contract period. National averages for Job Corps center operations are typically published by the Department of Labor and can be found in program performance reports. Without the student numbers, any cost comparison would be speculative.

What are the key performance indicators (KPIs) tied to the incentive fee structure of this contract?

The provided data specifies the contract type as 'COST PLUS INCENTIVE FEE' (pt=COST PLUS INCENTIVE FEE) but does not detail the specific Key Performance Indicators (KPIs) that trigger the incentive payments. Typically, for Job Corps center operations, these KPIs would relate to student outcomes such as on-time graduation rates, job placement rates within a specified period after graduation, average post-placement earnings, and potentially student satisfaction or employer satisfaction metrics. The incentive fee structure is designed to motivate the contractor to exceed baseline performance targets in these critical areas. A thorough review of the contract's Statement of Work (SOW) and the contract clauses would be necessary to identify the precise KPIs and the associated fee adjustments.

What is the track record of Adams and Associates Inc. in managing federal contracts, particularly in the education and training sector?

Adams and Associates Inc. was awarded this definitive contract for the operation of the Glenmont Job Corps Center, indicating a history of managing federal contracts in the education and training sector. The contract duration of approximately five years (2190 days) suggests a substantial engagement. To fully assess their track record, further investigation into their performance on this and other federal contracts would be beneficial. This would involve reviewing past performance evaluations, any documented issues or successes, and their overall history with government agencies. Information regarding their success in meeting performance targets, managing budgets, and complying with contract terms on similar projects would provide a clearer picture of their capabilities and reliability as a federal contractor.

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

While CPIF contracts aim to balance cost control with performance incentives, they carry inherent risks. One primary risk is the potential for ambiguity in defining the target cost and the incentive fee structure, which could lead to disputes or unintended consequences. If the performance metrics are not well-defined or measurable, the incentive aspect may be ineffective. Furthermore, the contractor might focus excessively on achieving the incentivized metrics at the expense of other crucial, non-incentivized aspects of service delivery, potentially impacting overall program quality. There's also a risk that the government may end up paying more than anticipated if the contractor performs exceptionally well, as the fee increases with performance, albeit within defined limits. Effective government oversight is crucial to mitigate these risks.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $30,294,634

Exercised Options: $30,294,634

Current Obligation: $30,294,634

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline