Labor Dept. Spends $26M on Youth Vocational Services, Awarded via Full & Open Competition
Contract Overview
Contract Amount: $26,144,911 ($26.1M)
Contractor: Chugach Mckinley, Inc.
Awarding Agency: Department of Labor
Start Date: 2006-05-22
End Date: 2010-04-30
Contract Duration: 1,439 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: VOCATIONAL AND ACADEMIC SERVICES FOR YOUTH AGES 16 - 24 / OPERATION OF GOVERNMENT OWNED FACILITY
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90810
Plain-Language Summary
Department of Labor obligated $26.1 million to CHUGACH MCKINLEY, INC. for work described as: VOCATIONAL AND ACADEMIC SERVICES FOR YOUTH AGES 16 - 24 / OPERATION OF GOVERNMENT OWNED FACILITY Key points: 1. Significant investment in youth vocational and academic services. 2. Contract awarded through a competitive process, suggesting potential for good value. 3. Long contract duration (over 3 years) may indicate complex service needs. 4. Sector focus on technical and trade schools, aligning with workforce development goals.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risk if not managed closely. Benchmarking against similar vocational training contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was used. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The $26.1 million expenditure aims to provide valuable services to youth, potentially improving their long-term earning potential and reducing reliance on social programs.
Public Impact
Provides essential training and academic support to young adults. Aims to improve workforce readiness and career opportunities for participants. Operates a government-owned facility, indicating a significant physical footprint. Focuses on a specific demographic (ages 16-24) facing employment challenges.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type requires careful monitoring.
- Long contract duration could lead to scope creep or outdated services.
- Lack of small business participation noted.
Positive Signals
- Full and open competition utilized.
- Clear focus on a critical demographic for workforce development.
- Government-owned facility may offer long-term cost efficiencies.
Sector Analysis
This contract falls within the 'Other Technical and Trade Schools' sector, a subset of educational services. Spending in this area is crucial for addressing skills gaps and preparing individuals for specific industries. Benchmarks vary widely based on program scope and duration.
Small Business Impact
The data indicates that small businesses were not a direct participant in this contract, as the 'sb' field is false. Efforts to include small businesses in future solicitations or subcontracting opportunities could be explored.
Oversight & Accountability
The contract's duration and cost necessitate robust oversight from the Department of Labor's Employment and Training Administration to ensure performance standards are met and funds are used efficiently.
Related Government Programs
- Other Technical and Trade Schools
- Department of Labor Contracting
- Employment and Training Administration Programs
Risk Flags
- Cost Plus Incentive Fee contract type.
- Long contract duration.
- No explicit small business participation.
- Potential for service obsolescence over time.
Tags
other-technical-and-trade-schools, department-of-labor, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $26.1 million to CHUGACH MCKINLEY, INC.. VOCATIONAL AND ACADEMIC SERVICES FOR YOUTH AGES 16 - 24 / OPERATION OF GOVERNMENT OWNED FACILITY
Who is the contractor on this award?
The obligated recipient is CHUGACH MCKINLEY, 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 $26.1 million.
What is the period of performance?
Start: 2006-05-22. End: 2010-04-30.
What specific vocational and academic outcomes were achieved by participants in this program, and how do they compare to program goals?
Measuring the success of vocational and academic programs requires tracking key performance indicators such as graduation rates, job placement percentages, starting salaries of graduates, and long-term career progression. Comparing these metrics against the initial program objectives and industry standards would provide a clear picture of the program's effectiveness in preparing youth for the workforce.
How was the 'Cost Plus Incentive Fee' structure managed to ensure cost efficiency and prevent potential overruns?
Effective management of a CPIF contract involves establishing clear performance targets and realistic cost ceilings. Regular audits, performance reviews, and transparent communication between the contractor and the agency are crucial. The incentive fee structure should be carefully calibrated to reward efficiency without encouraging unnecessary spending or compromising service quality.
What is the long-term impact of this $26 million investment on the participants' economic well-being and the broader economy?
The long-term impact hinges on the quality of training and the job market's absorption of graduates. Successful programs can lead to higher lifetime earnings for participants, reduced unemployment, and increased tax revenue. Conversely, poorly executed programs may result in wasted resources and limited positive change for the youth involved.
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: DOLJ05SA00002
Offers Received: 1
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: $27,943,366
Exercised Options: $27,943,366
Current Obligation: $26,144,911
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-05-22
Current End Date: 2010-04-30
Potential End Date: 2010-04-30 00:00:00
Last Modified: 2020-04-24
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