Labor Dept. awards $32.4M contract to Chugach Industries for Oneonta Job Corps Center operations

Contract Overview

Contract Amount: $32,446,454 ($32.4M)

Contractor: Chugach Industries, Inc.

Awarding Agency: Department of Labor

Start Date: 2006-03-01

End Date: 2009-06-30

Contract Duration: 1,217 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE ONEONTA JOB CORPS CENTER

Place of Performance

Location: ONEONTA, OTSEGO County, NEW YORK, 13820

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $32.4 million to CHUGACH INDUSTRIES, INC. for work described as: OPERATION OF THE ONEONTA JOB CORPS CENTER Key points: 1. Contract awarded via full and open competition after exclusion of sources. 2. Cost Plus Incentive Fee contract type suggests performance-based incentives. 3. The contract duration is over 3 years, indicating a significant operational commitment. 4. The NAICS code 611519 points to vocational training services. 5. No small business participation noted.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure aims to align contractor performance with government objectives. However, without specific performance metrics and final award amounts, a precise value assessment is difficult. The base award amount of $26.66M provides a starting point for cost evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, indicating a competitive process was intended. This method generally promotes price discovery and potentially better pricing, though the specific exclusion of sources warrants further investigation into its rationale and impact.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for the operation of the Job Corps center.

Public Impact

Provides essential job training and career development services to youth. Supports local employment through the operation of the Oneonta Job Corps Center. Impacts the effectiveness of federal workforce development programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in an otherwise full and open competition needs clarification.
Cost Plus Incentive Fee contracts can lead to cost overruns if not managed tightly.

Positive Signals

Competitive award process.
Focus on vocational training and employment outcomes.

Sector Analysis

The contract falls within the 'Other Technical and Trade Schools' sector, specifically vocational training. Federal spending in this area supports workforce development initiatives. Benchmarks for similar Job Corps center operations would be needed for a more precise comparison.

Small Business Impact

The data indicates no small business participation in this contract. This is a notable absence, as federal policy often encourages small business involvement in government contracting.

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests a specific procurement strategy was employed. Oversight would focus on the justification for excluding sources and the subsequent performance management of the Cost Plus Incentive Fee contract.

Related Government Programs

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

Risk Flags

Lack of small business participation.
Ambiguity in 'exclusion of sources' justification.
Potential for cost overruns in CPIF contracts.
Need for performance data to assess value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.4 million to CHUGACH INDUSTRIES, INC.. OPERATION OF THE ONEONTA JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is CHUGACH INDUSTRIES, 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 $32.4 million.

What is the period of performance?

Start: 2006-03-01. End: 2009-06-30.

What was the specific justification for excluding certain sources in this 'full and open competition after exclusion of sources' award, and did this exclusion impact the final price or contractor sele

The justification for excluding sources is critical. If the exclusion was based on specific capabilities or past performance requirements, it might be valid. However, if it unduly limited competition, it could have led to a less competitive price. Further review of the solicitation documents and award decision is needed to determine the impact on price and selection.

How effectively did the Cost Plus Incentive Fee structure incentivize Chugach Industries, Inc. to achieve optimal performance and cost control for the Oneonta Job Corps Center?

The effectiveness of the CPIF structure hinges on the clearly defined incentive targets and the actual performance achieved against them. Without access to the specific incentive metrics, performance reports, and the final award amount (including incentive fees), it's impossible to definitively assess cost control and performance optimization. A review of post-award performance data is necessary.

What was the overall cost-effectiveness of this contract in delivering job training and employment outcomes compared to similar Job Corps centers or alternative training programs?

Assessing cost-effectiveness requires comparing the per-student cost, completion rates, and subsequent employment success of the Oneonta Job Corps Center under this contract against established benchmarks. Data on these performance indicators, alongside the total contract expenditure, is needed to determine if the $32.4 million investment yielded satisfactory returns in terms of participant outcomes and federal program goals.

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-05-ONEONTA

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 560 E 34TH AVE, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,446,454

Exercised Options: $32,446,454

Current Obligation: $32,446,454

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline