Department of Labor's $77.3M contract for youth training services awarded to Career Systems Development Corporation

Contract Overview

Contract Amount: $77,315,828 ($77.3M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2005-08-01

End Date: 2014-07-17

Contract Duration: 3,272 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: PROVIDE EDUCATIONAL AND VCATIONAL TRAINING SERVICES TO 412 TRAINEES AGED 16 TO 24 YEARS OLD. RESIDENTIAL AND NON-RESIDENTIAL.

Place of Performance

Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95127

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $77.3 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: PROVIDE EDUCATIONAL AND VCATIONAL TRAINING SERVICES TO 412 TRAINEES AGED 16 TO 24 YEARS OLD. RESIDENTIAL AND NON-RESIDENTIAL. Key points: 1. Contract provides comprehensive educational and vocational training for 412 young adults. 2. Services include both residential and non-residential training options. 3. The contract spans nearly a decade, indicating a long-term need for these services. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The fixed-price incentive contract type aims to control costs while ensuring performance. 6. Focus on 16-24 year olds addresses critical workforce development needs for youth.

Value Assessment

Rating: good

The contract value of $77.3 million over approximately 9 years for training 412 individuals suggests a per-participant cost that needs careful benchmarking. Without specific details on the intensity and scope of training, direct comparisons are difficult. However, the fixed-price incentive structure implies an effort to manage costs effectively, with potential for savings if performance targets are met. The long duration suggests sustained value delivery, but ongoing monitoring of outcomes is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process is generally expected to yield competitive pricing and ensure the government receives the best value. The number of bidders is not specified, but the open competition suggests a healthy market for these specialized training services.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring that the most capable providers are selected, leading to more efficient use of public funds.

Public Impact

Benefits 412 young adults aged 16-24 by providing them with educational and vocational skills. Delivers essential training services aimed at improving employability and career prospects for participants. The contract's primary geographic impact is in California, where the services are likely delivered. Implications for the workforce include equipping young individuals with skills needed for various trades and professions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) could lead to potential cost overruns if not managed tightly.
Fixed-price incentive contracts require careful monitoring of performance metrics to ensure value.
Dependence on a single contractor for a significant period may limit flexibility in adapting to changing training needs.

Positive Signals

Full and open competition suggests a competitive environment that should drive value.
Focus on youth development addresses a critical societal and economic need.
The contract's structure aims to incentivize performance and cost-effectiveness.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, specifically classified under NAICS code 611519. This sector encompasses institutions providing vocational and technical training. The federal government, particularly the Department of Labor, frequently invests in workforce development programs to equip individuals with job-ready skills. Comparable spending benchmarks would involve analyzing other Department of Labor contracts for similar youth training initiatives or vocational education programs.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to businesses of all sizes, and the award was based on the best overall proposal. There is no explicit information on subcontracting requirements for small businesses within the provided data. The lack of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. As a definitive contract awarded under full and open competition, it is subject to standard federal procurement regulations and oversight mechanisms. Accountability measures would be tied to the contract's performance clauses and reporting requirements. Transparency is generally maintained through contract databases, though specific performance details may be less public.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Job Corps Program
YouthBuild Program
Adult Education and Literacy Programs

Risk Flags

Long contract duration requires sustained oversight.
Performance metrics for incentive contracts need rigorous tracking.
Potential for scope creep over a long-term engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $77.3 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. PROVIDE EDUCATIONAL AND VCATIONAL TRAINING SERVICES TO 412 TRAINEES AGED 16 TO 24 YEARS OLD. RESIDENTIAL AND NON-RESIDENTIAL.

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $77.3 million.

What is the period of performance?

Start: 2005-08-01. End: 2014-07-17.

What specific vocational skills are being taught under this contract, and how do they align with current labor market demands?

The provided data indicates 'Educational and Vocational Training Services' but does not specify the exact vocational skills. To assess alignment with labor market demands, a detailed review of the contract's statement of work and curriculum would be necessary. Typically, such programs aim to equip participants with skills in high-demand sectors like healthcare, information technology, advanced manufacturing, or skilled trades. The Department of Labor often conducts labor market analyses to inform the design of these training programs, ensuring they address identified skill gaps and provide pathways to sustainable employment. Without the specific curriculum details, it's challenging to definitively state the alignment, but the program's longevity suggests it has historically met some level of workforce needs.

How does the per-participant cost of this contract compare to similar youth training programs funded by the Department of Labor?

The total contract value is $77,315,828 over a duration of 3,272 days (approximately 9 years) for 412 trainees. This yields a rough per-participant cost of approximately $187,660 over the entire contract period, or about $20,566 per participant per year. Benchmarking this against similar Department of Labor programs requires access to data on other youth training contracts, including their scope, duration, service intensity (residential vs. non-residential), and specific outcomes. Programs like Job Corps, which offer comprehensive residential training, can have higher per-participant costs. A detailed comparison would involve analyzing the specific services provided, the level of support (e.g., stipends, housing, job placement assistance), and the target population's needs. The 'good' rating suggests it's within a reasonable range, but a precise benchmark is not possible with the current data.

What are the key performance indicators (KPIs) used to measure the success of the training program, and what have been the historical performance outcomes?

The provided data does not specify the key performance indicators (KPIs) for this contract. However, for youth training programs funded by the Department of Labor, common KPIs often include: completion rates, attainment of industry-recognized credentials, job placement rates within a specified timeframe after completion, starting wages of placed participants, and retention in employment. The contract type, 'Fixed Price Incentive' (PT: FIXED PRICE INCENTIVE), suggests that performance targets are linked to financial incentives. To assess historical performance, one would need to review contract performance reports, award fee determinations, or program evaluation studies conducted by the Department of Labor or independent bodies. Without this specific performance data, it's impossible to evaluate the program's historical success against its objectives.

What is the track record of Career Systems Development Corporation in delivering similar government contracts, particularly those focused on youth education and training?

Career Systems Development Corporation (CSDC) has a history of providing workforce development and training services. Information regarding their track record with government contracts, especially those similar to this Department of Labor award, would typically be available through federal procurement databases (like SAM.gov) and potentially through past performance reviews cited in contract award documents. Assessing their success would involve examining factors such as on-time delivery, quality of services, adherence to budget, and client satisfaction reported in previous contracts. Given this contract's long duration (over 9 years), it implies a level of satisfaction or capability demonstrated by CSDC to the Department of Labor. Further investigation into CSDC's contract history, including any awards, penalties, or significant issues, would provide a more comprehensive view of their reliability.

How has federal spending on youth vocational training programs evolved over the period this contract was active (2005-2014) and what trends does this contract reflect?

This contract, active from August 2005 to July 2014, falls within a period where federal investment in workforce development, including youth training, saw fluctuations influenced by economic conditions and policy priorities. The early to mid-2000s saw continued emphasis on programs like the Workforce Investment Act (WIA), which aimed to provide integrated services for job seekers. The latter part of this contract's period coincided with the aftermath of the 2008 financial crisis, leading to increased focus on job creation and training for unemployed individuals. This specific contract's substantial value and long duration suggest a consistent, significant federal commitment to addressing youth unemployment and skill deficits in California during this timeframe. It reflects a strategy of providing comprehensive, long-term support rather than short-term interventions.

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

Solicitation ID: DOLJ05SA00003

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DRIVE, #100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $77,315,828

Exercised Options: $77,315,828

Current Obligation: $77,315,828

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline