Department of Labor's $67.6M Job Corps Contract with Applied Technology Systems, Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $67,605,964 ($67.6M)

Contractor: Applied Technology Systems, Inc.

Awarding Agency: Department of Labor

Start Date: 2005-08-01

End Date: 2015-06-18

Contract Duration: 3,608 days

Daily Burn Rate: $18.7K/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 CLEVELAND JOB CORPS CENTER IN THE STATE OF OHIO

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44106

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $67.6 million to APPLIED TECHNOLOGY SYSTEMS, INC. for work described as: OPERATION OF THE CLEVELAND JOB CORPS CENTER IN THE STATE OF OHIO Key points: 1. The contract, valued at $67.6 million, supports the operation of the Cleveland Job Corps Center. 2. Applied Technology Systems, Inc. is the contractor, with the Department of Labor as the agency. 3. The contract type is Cost Plus Incentive Fee, indicating shared risk and reward. 4. Awarded under 'Full and Open Competition After Exclusion of Sources', suggesting a competitive process with specific criteria. 5. The duration spans from August 2005 to June 2015, a significant operational period.

Value Assessment

Rating: good

The Cost Plus Incentive Fee structure suggests an attempt to align contractor performance with government objectives. Benchmarking against similar Job Corps center operations would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition After Exclusion of Sources' method implies a competitive bidding process that was open but may have had specific requirements. This approach aims for fair pricing through market forces.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently by securing the best value for services rendered.

Public Impact

Provides essential job training and career development services to individuals in Ohio. Supports the Department of Labor's mission to enhance workforce development and economic opportunity. The long contract duration suggests a stable and ongoing need for these services. Impacts local communities through employment and skill-building initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns inherent in Cost Plus contracts.
Exclusion of sources, even in a full and open context, warrants scrutiny.

Positive Signals

Competitive award process likely secured favorable pricing.
Long-term contract indicates sustained program effectiveness.
Focus on job training addresses critical workforce needs.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' sector (NAICS 611519). Spending in this sector is crucial for workforce development. Benchmarks for similar Job Corps center operations would be relevant for a detailed cost analysis.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract's long duration and Cost Plus Incentive Fee structure necessitate robust oversight from the Department of Labor to ensure performance standards are met and costs are controlled effectively.

Related Government Programs

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

Risk Flags

Long contract duration (approx. 10 years) may indicate a lack of recent market testing.
Cost Plus Incentive Fee contracts carry inherent risks of cost overruns if not closely managed.
The 'Exclusion of Sources' clause, even within a full and open framework, warrants understanding the rationale.
Lack of specific performance data makes it difficult to assess true value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $67.6 million to APPLIED TECHNOLOGY SYSTEMS, INC.. OPERATION OF THE CLEVELAND JOB CORPS CENTER IN THE STATE OF OHIO

Who is the contractor on this award?

The obligated recipient is APPLIED TECHNOLOGY SYSTEMS, 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 $67.6 million.

What is the period of performance?

Start: 2005-08-01. End: 2015-06-18.

What were the key performance indicators (KPIs) used to evaluate Applied Technology Systems, Inc.'s success under this contract, and how did they perform against these metrics?

The provided data does not detail the specific Key Performance Indicators (KPIs) established for this contract. Typically, for Job Corps centers, KPIs would include student graduation rates, job placement success, starting wages of placed individuals, and program completion rates. Without these metrics, a thorough assessment of the contractor's performance and the value derived from the $67.6 million investment is not possible.

Given the Cost Plus Incentive Fee (CPIF) structure, what mechanisms were in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?

A CPIF contract shares cost savings and overruns between the government and contractor, incentivizing efficiency. Specific mechanisms to mitigate risk would include pre-defined target costs, incentive fee formulas tied to performance against these targets, and rigorous government oversight of expenditures. Regular audits and reviews of the contractor's financial management and operational efficiency are crucial to ensure taxpayer funds are used appropriately.

How effectively did the 'Full and Open Competition After Exclusion of Sources' process ensure the best value was obtained for the government compared to a purely unrestricted full and open competition

This procurement method suggests that while the competition was generally open, certain sources were excluded based on specific criteria, potentially related to capability or past performance. This approach aims to balance broad competition with ensuring only qualified entities participate, potentially leading to better technical solutions. However, it could also limit the pool of bidders, potentially impacting the final price achieved compared to a truly unrestricted competition.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1300 E 9TH ST PENTON BLDG STE 1710, CLEVELAND, OH, 44114

Business Categories: Black American Owned Business, Category Business, Educational Institution, Higher Education, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,236,468

Exercised Options: $69,236,468

Current Obligation: $67,605,964

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline