Department of Labor's $31.5M Grafton Job Corps Center contract awarded to Adams and Associates Inc

Contract Overview

Contract Amount: $31,539,066 ($31.5M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2005-03-01

End Date: 2007-02-28

Contract Duration: 729 days

Daily Burn Rate: $43.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE GRAFTON JOB CORPS CENTER

Place of Performance

Location: NORTH GRAFTON, WORCESTER County, MASSACHUSETTS, 01536

State: Massachusetts Government Spending

Plain-Language Summary

Department of Labor obligated $31.5 million to ADAMS AND ASSOCIATES INC for work described as: OPERATION OF THE GRAFTON JOB CORPS CENTER Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 2. The duration of 729 days suggests a significant operational scope for the Job Corps center. 3. The contract was awarded under full and open competition, indicating a broad search for qualified bidders. 4. The base award amount of $4.3M suggests initial funding, with potential for growth based on performance incentives. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The contract's performance period spans two fiscal years, requiring sustained operational management.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and performance metrics. The cost-plus-incentive-fee (CPIF) pricing structure can lead to cost overruns if not managed carefully, but it also incentivizes efficiency. Without specific performance data or comparisons to similar Job Corps center operations, a definitive value assessment is challenging. The base award of $4.3 million for a 729-day period suggests a monthly operational cost of approximately $590,000, which needs to be evaluated against the services provided and student outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair market pricing and encourage innovation. The number of bidders is not specified, but the open competition implies a robust selection process was undertaken by the Department of Labor.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through market forces and ensures the government receives the best value for its investment.

Public Impact

The Grafton Job Corps Center provides vocational training and education to young adults, aiming to improve their employability. Beneficiaries include disadvantaged youth seeking skills development and career pathways. The services delivered are crucial for workforce development and economic opportunity in the region. The contract supports local employment through the operation and staffing of the training center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if performance targets are not met efficiently.
Ensuring consistent quality of training and student outcomes over the contract duration requires diligent oversight.
The long duration of the contract necessitates sustained monitoring to ensure ongoing compliance and effectiveness.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
The incentive fee structure encourages the contractor to meet or exceed performance objectives.
The contract supports a vital federal program focused on youth employment and training.

Sector Analysis

The contract falls within the Education and Training Services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at workforce development for at-risk youth. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers or similar government-funded training programs, considering factors like student population, program offerings, and geographic location.

Small Business Impact

The data indicates that small business participation (sb) was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. The focus on full and open competition suggests that larger, established firms were likely the primary bidders, though small businesses could still participate as subcontractors if selected by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Employment and Training Administration. Accountability measures are likely tied to the performance incentives within the Cost Plus Incentive Fee structure. Transparency would be facilitated through contract award databases and potentially through program performance reports, though specific oversight mechanisms and Inspector General jurisdiction details are not provided in this data snippet.

Related Government Programs

Job Corps Program
Workforce Investment Act Programs
Vocational Education Grants
Federal Job Training Programs

Risk Flags

Potential for cost overruns in CPIF contracts.
Need for clear and measurable performance metrics.
Requires robust government oversight to ensure value and effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $31.5 million to ADAMS AND ASSOCIATES INC. OPERATION OF THE GRAFTON 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 $31.5 million.

What is the period of performance?

Start: 2005-03-01. End: 2007-02-28.

What is the historical spending pattern for the Grafton Job Corps Center contract?

The provided data reflects a single contract award for the operation of the Grafton Job Corps Center to Adams and Associates Inc. for $31,539,066.02, spanning from March 1, 2005, to February 28, 2007 (729 days). This represents a specific period of operation. To understand the historical spending pattern, one would need to examine prior contracts for this center, potentially awarded to different entities, and subsequent contracts to assess continuity and changes in funding levels and contract types over time. Analyzing trends in annual spending, contract durations, and award values would provide a comprehensive view of the federal investment in this facility.

How does the per-student cost of this contract compare to other Job Corps centers?

Determining the per-student cost requires knowing the average daily or annual student enrollment at the Grafton Job Corps Center during the contract period and dividing the total contract value by this enrollment figure. The provided data does not include student enrollment numbers. Without this crucial information, a direct comparison to other Job Corps centers is not possible. Benchmarking would necessitate obtaining enrollment data for this center and for comparable centers, then calculating and comparing the respective per-student operational costs. Factors such as program intensity, student support services, and local cost of living can significantly influence per-student costs.

What specific performance metrics are tied to the incentive fee in this contract?

The contract type is Cost Plus Incentive Fee (CPIF), which means the contractor is reimbursed for allowable costs plus a variable fee that is adjusted based on performance against pre-determined targets. The specific performance metrics that trigger adjustments to the incentive fee are not detailed in the provided data. Typically, for Job Corps centers, these metrics could include student academic achievement, graduation rates, job placement success, employer satisfaction with graduates, and timely completion of training programs. The contract documents would outline these specific Key Performance Indicators (KPIs) and the formula for calculating the incentive fee adjustments.

What is the track record of Adams and Associates Inc. in managing federal contracts, particularly Job Corps centers?

The provided data indicates that Adams and Associates Inc. was awarded this specific contract to operate the Grafton Job Corps Center. To assess their track record, a broader review of their contract history with the federal government, particularly the Department of Labor and other agencies involved in workforce development, would be necessary. This would involve examining past performance evaluations, any contract disputes or terminations, and the success of previous programs they have managed. Information on their experience with other Job Corps centers or similar educational/training facilities would be particularly relevant for evaluating their capability in this domain.

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

A primary risk with Cost Plus Incentive Fee (CPIF) contracts is the potential for cost overruns if the incentive targets are poorly defined or if the contractor prioritizes achieving targets over cost efficiency. While CPIF aims to incentivize performance, there's a risk that the government may end up paying more than anticipated if costs escalate beyond initial projections, even if performance is met. Another risk involves the complexity of defining and measuring performance metrics accurately and objectively. If metrics are ambiguous or easily manipulated, the incentive structure may not yield the desired outcomes, leading to suboptimal service delivery or inflated costs. Diligent 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: 1

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: $31,539,066

Exercised Options: $31,539,066

Current Obligation: $31,539,066

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline