Department of Labor's Job Corps Center Management contract awarded to Management & Training Corporation for over $63 million

Contract Overview

Contract Amount: $63,656,053 ($63.7M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2004-10-01

End Date: 2014-08-27

Contract Duration: 3,617 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: MANAGEMENT & OPERATION OF DOL JOB CORPS CENTER

Place of Performance

Location: ASTORIA, CLATSOP County, OREGON, 97103

State: Oregon Government Spending

Plain-Language Summary

Department of Labor obligated $63.7 million to MANAGEMENT & TRAINING CORPORATION for work described as: MANAGEMENT & OPERATION OF DOL JOB CORPS CENTER Key points: 1. The contract's value of over $63 million over its duration suggests a significant investment in workforce development. 2. Full and open competition was utilized, indicating a potentially robust market for these services. 3. The contract type, Cost Plus Incentive Fee (CPIF), suggests a focus on performance-based outcomes with financial incentives. 4. The duration of the contract, over 10 years, implies a long-term commitment to the Job Corps program. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools, a key sector for vocational training. 6. The contract was awarded to a single entity, Management & Training Corporation, highlighting their role in operating Job Corps centers.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and comparable contract data for Job Corps center operations. The total award amount of over $63 million spread across more than 10 years suggests an average annual expenditure of approximately $6 million per center managed. This figure needs to be assessed against the number of centers operated and the services provided to determine true value for money. The CPIF contract type allows for adjustments based on performance, which can influence the final cost and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure that the government receives competitive pricing. The fact that Management & Training Corporation was ultimately awarded the contract indicates they offered the best value proposition among the bidders. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among potential service providers.

Public Impact

The primary beneficiaries are individuals seeking vocational training and employment opportunities through the Job Corps program. The services delivered include comprehensive training, education, career counseling, and job placement assistance. The geographic impact is focused on the specific locations where the Job Corps centers operated by Management & Training Corporation are situated, in this case, Oregon. Workforce implications include the training and upskilling of individuals, potentially leading to increased employment and economic mobility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration exceeding 10 years may limit opportunities for new entrants or innovative approaches.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the services.
Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not managed tightly, despite incentive structures.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive bidding process.
The CPIF contract type incentivizes the contractor to meet or exceed performance targets.
Long-term contract suggests stability and a sustained commitment to the Job Corps mission.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at preparing young people for careers. The market for operating such centers involves entities with expertise in education, training, and social services. Comparable spending benchmarks would involve analyzing other federal or state contracts for similar workforce development programs.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no explicit mention of small business set-asides. This suggests that the primary contract was not specifically targeted towards small businesses. However, the prime contractor, Management & Training Corporation, may engage small businesses as subcontractors for specialized services, which is not detailed here. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities.

Oversight & Accountability

Oversight for Job Corps contracts typically falls under the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and site visits to ensure compliance with program requirements and quality standards. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Transparency is generally maintained through contract award databases and public reporting on program outcomes.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act (WIOA) programs
Other federal job training and employment services
State-level vocational education initiatives

Risk Flags

Contract duration exceeds typical federal contract lengths.
Performance metrics and outcomes not detailed in provided data.
Potential for cost escalation in CPIF contracts if not closely monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $63.7 million to MANAGEMENT & TRAINING CORPORATION. MANAGEMENT & OPERATION OF DOL JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $63.7 million.

What is the period of performance?

Start: 2004-10-01. End: 2014-08-27.

What is the historical spending trend for Job Corps center management contracts awarded to Management & Training Corporation?

Analyzing historical spending for Management & Training Corporation's Job Corps contracts requires access to a broader dataset than provided. However, the current contract's award amount of over $63 million from 2004 to 2014 indicates a substantial, long-term investment. To understand trends, one would need to examine prior and subsequent contracts awarded to MTC for similar services, looking at total obligated amounts, contract types, and durations. This would reveal patterns in contract values, potential increases or decreases in spending over time, and the consistency of MTC's role in operating Job Corps centers. Without this broader context, it's difficult to establish a definitive spending trend beyond this single contract's magnitude.

How does the Cost Plus Incentive Fee (CPIF) structure typically impact the final cost and performance outcomes for Job Corps centers?

The Cost Plus Incentive Fee (CPIF) contract structure aims to align the contractor's financial interests with the government's objectives. In the context of Job Corps centers, the 'cost' portion covers allowable expenses incurred by Management & Training Corporation in operating the facility. The 'incentive fee' is earned based on achieving specific performance targets, which could include student graduation rates, job placement success, or cost savings. This structure encourages the contractor to be efficient and effective, as higher performance leads to higher profit. However, the effectiveness hinges on well-defined, measurable, and achievable performance metrics. If metrics are poorly defined or easily met, the incentive may be weak. Conversely, overly ambitious targets could lead to contractor frustration or a focus on easily quantifiable metrics at the expense of holistic student development. The final cost can vary based on how well the contractor meets these incentives, making it dynamic rather than fixed.

What are the key performance indicators (KPIs) typically used to evaluate the success of Job Corps center operations under contracts like this?

Key Performance Indicators (KPIs) for Job Corps center operations are designed to measure the program's effectiveness in preparing young individuals for employment. Common KPIs include: 1. **Completion Rates:** The percentage of students who successfully complete their training programs. 2. **Job Placement Rates:** The percentage of graduates who secure employment within a specified period after leaving the program. 3. **Wage Outcomes:** The average starting wage of placed graduates, indicating the quality of jobs obtained. 4. **Retention Rates:** The percentage of students who remain enrolled and engaged in the program. 5. **Academic Achievement:** Measures of improvement in basic education and vocational skills. 6. **Employer Satisfaction:** Feedback from employers who hire Job Corps graduates. These KPIs are crucial for assessing the value for money and the overall impact of the contract, and they often form the basis for incentive fee calculations in CPIF contracts.

What is the typical scale of operations for a Job Corps center managed under a contract of this magnitude?

A contract valued at over $63 million awarded over approximately 10 years suggests the management of one or more significant Job Corps centers. The scale of operations can vary widely depending on the specific center's capacity and the range of vocational programs offered. Typically, a Job Corps center can serve several hundred to over a thousand students concurrently. Operations involve providing not only vocational training in various trades (e.g., construction, healthcare, IT, culinary arts) but also academic education (GED preparation, high school diplomas), career counseling, job placement services, and often residential support (housing, meals, healthcare). The magnitude of this contract implies a comprehensive, long-term commitment to a substantial operational footprint, likely encompassing multiple training tracks and a significant student population.

How does the 'Other Technical and Trade Schools' NAICS code (611519) relate to the services provided by Job Corps centers?

The NAICS code 611519, 'Other Technical and Trade Schools,' is highly relevant to the services provided by Job Corps centers. This classification encompasses institutions primarily offering vocational or technical training and diplomas or certificates in specific occupational fields. Job Corps centers fit this description perfectly, as their core mission is to equip young individuals with the skills and knowledge needed for specific trades and technical careers. Unlike traditional academic institutions, these schools focus on practical, hands-on training designed to lead directly to employment. The code covers a broad range of specialized training, aligning with the diverse vocational programs offered at Job Corps sites, from automotive repair and welding to healthcare support and information technology.

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

Address: 500 NORTH MARKETPLACE DR, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $63,656,053

Exercised Options: $63,656,053

Current Obligation: $63,656,053

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline