Department of Labor's $51.8M Job Corps Training Contract with RES-CARE, Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $51,839,769 ($51.8M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2004-11-01

End Date: 2014-09-02

Contract Duration: 3,592 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: PROVIDE ACADEMIC AND VOCATIONAL TRAINING SERVICE TO 415 JOB CORPS PARTICIPANTS, INCLUDING CAREER TRANSITION SERVICES.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85004

State: Arizona Government Spending

Plain-Language Summary

Department of Labor obligated $51.8 million to RES-CARE, INC for work described as: PROVIDE ACADEMIC AND VOCATIONAL TRAINING SERVICE TO 415 JOB CORPS PARTICIPANTS, INCLUDING CAREER TRANSITION SERVICES. Key points: 1. The contract provides academic and vocational training to 415 Job Corps participants. 2. RES-CARE, Inc. has held this contract for nearly a decade, suggesting established performance. 3. The contract type (Cost Plus Incentive Fee) aims to balance cost control with performance incentives. 4. The sector is vocational training, a critical component of workforce development.

Value Assessment

Rating: fair

The contract value of $51.8M over 10 years averages approximately $5.18M annually. Without specific per-participant cost benchmarks or comparison data for similar training programs, assessing its pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process for soliciting bids and selecting a contractor. This method generally promotes competitive pricing and value for the government.

Taxpayer Impact: The competitive award process likely ensured a reasonable price for the services, maximizing taxpayer value for workforce development initiatives.

Public Impact

Provides essential job skills and career transition services to individuals seeking employment. Supports the Department of Labor's mission to enhance workforce readiness and economic opportunity. Impacts participants by offering pathways to stable employment and higher earning potential.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) may limit opportunities for re-competition and potential cost savings.
Cost Plus Incentive Fee contracts can sometimes lead to higher costs if not managed carefully.
Lack of specific performance metrics or outcomes data makes it difficult to fully assess effectiveness.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long-term contract indicates a stable provider for a critical service.
Focus on career transition services adds significant value beyond basic training.

Sector Analysis

This contract falls within the vocational training and education services sector, which is crucial for workforce development. Benchmarks for this sector can vary widely based on the type and intensity of training provided.

Small Business Impact

The data indicates the primary contractor is RES-CARE, Inc. There is no explicit information provided regarding the involvement or subcontracting with small businesses on this contract.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight is necessary to ensure service delivery quality, cost control, and adherence to program goals.

Related Government Programs

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

Risk Flags

Long contract duration potentially limits market competition.
Cost Plus Incentive Fee contracts require diligent oversight to manage costs.
Lack of specific outcome metrics makes performance assessment difficult.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $51.8 million to RES-CARE, INC. PROVIDE ACADEMIC AND VOCATIONAL TRAINING SERVICE TO 415 JOB CORPS PARTICIPANTS, INCLUDING CAREER TRANSITION SERVICES.

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $51.8 million.

What is the period of performance?

Start: 2004-11-01. End: 2014-09-02.

What is the average cost per participant for the academic and vocational training provided under this contract?

The total contract value is $51.8M for 415 participants over approximately 10 years. This averages to roughly $124,914 per participant over the contract's life, or about $12,491 per participant annually. However, this is a blended average and doesn't account for varying training durations or types of services received by individual participants.

What are the key performance indicators (KPIs) used to measure the success of the training and career transition services?

The provided data does not specify the key performance indicators (KPIs) used to measure the success of the training and career transition services. Effective oversight would require clearly defined metrics such as job placement rates, post-placement retention rates, wage progression, and participant satisfaction.

How does the Cost Plus Incentive Fee (CPIF) structure incentivize RES-CARE, Inc. to achieve cost savings and performance targets?

A CPIF contract typically includes a target cost, a target profit, and a fee-sharing arrangement. If the contractor performs below the target cost, both the government and contractor share in the savings. Conversely, if costs exceed the target, both share the overrun, up to a ceiling. Incentive fees are added or subtracted based on achieving specific performance objectives, encouraging efficiency and quality.

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

Parent Company: Carestream Health, Inc. (UEI: 244882650)

Address: 10140 LINN STATION RD, LOUISVILLE, KY, 40223

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

Financial Breakdown

Contract Ceiling: $51,839,769

Exercised Options: $51,839,769

Current Obligation: $51,839,769

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline