DOL's Job Corps Center Management Contract Awarded for $30.4M to Management & Training Corporation

Contract Overview

Contract Amount: $30,428,226 ($30.4M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2004-10-01

End Date: 2009-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $16.7K/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: TROUTDALE, MULTNOMAH County, OREGON, 97060

State: Oregon Government Spending

Plain-Language Summary

Department of Labor obligated $30.4 million to MANAGEMENT & TRAINING CORPORATION for work described as: MANAGEMENT & OPERATION OF DOL JOB CORPS CENTER Key points: 1. The contract, valued at $30.4 million, covers the management and operation of a Job Corps Center. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee, which incentivizes cost control and performance. 4. The duration of the contract is 1825 days (5 years).

Value Assessment

Rating: fair

The contract value of $30.4M over 5 years averages $6.08M annually. Benchmarking against similar large-scale training and education service contracts is difficult without more specific service details, but the annual value appears within a reasonable range for operating a significant educational facility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for the services rendered.

Public Impact

Provides essential job training and career services to disadvantaged youth. Supports workforce development initiatives by equipping individuals with in-demand skills. Impacts local communities through job creation and economic activity related to center operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics and outcomes in the provided data.
Potential for cost overruns with Cost Plus Incentive Fee contract type if not managed closely.
No indication of small business participation.

Positive Signals

Awarded through full and open competition.
Contract duration of 5 years provides stability for operations.
Incentive fee structure encourages contractor performance.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, specifically under NAICS code 611519. Spending in this sector supports vocational training and workforce development. Benchmarks for similar large-scale training center operations would typically consider facility size, student capacity, and program scope.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this specific award, and their participation is not explicitly detailed.

Oversight & Accountability

Oversight would typically be managed by the Department of Labor's Employment and Training Administration. The Cost Plus Incentive Fee structure requires diligent monitoring of costs and performance to ensure value for money and accountability.

Related Government Programs

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

Risk Flags

Contract duration is substantial (5 years).
Cost Plus Incentive Fee contract type requires careful monitoring.
No explicit small business participation noted.
Lack of detailed performance outcome data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $30.4 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 $30.4 million.

What is the period of performance?

Start: 2004-10-01. End: 2009-09-30.

What specific performance metrics are used to evaluate the success of the Job Corps Center operations under this contract, and how do they align with the incentive fee structure?

The provided data does not detail specific performance metrics. However, Cost Plus Incentive Fee contracts typically tie bonuses or penalties to achieving predefined goals related to cost savings, quality of service, or program outcomes. Effective oversight would involve tracking metrics such as student graduation rates, job placement success, and employer satisfaction to ensure the contractor meets objectives and earns incentive fees appropriately.

Given the Cost Plus Incentive Fee structure, what are the primary risks associated with cost overruns, and what mitigation strategies are in place?

The primary risk with Cost Plus Incentive Fee contracts is that costs could exceed projections if the incentive structure is not carefully designed or if unforeseen operational challenges arise. Mitigation strategies typically include establishing realistic baseline costs, clearly defining achievable performance targets for incentives, robust government oversight of expenditures, and regular performance reviews to identify and address potential cost drivers early.

How effectively does this contract contribute to the Department of Labor's broader mission of workforce development and reducing unemployment among disadvantaged youth?

This contract directly supports the DOL's mission by funding the operation of a Job Corps Center, which provides comprehensive training and support services to at-risk youth. Its effectiveness hinges on the quality of training, the relevance of skills taught to current labor market demands, and successful job placement rates for graduates. The competitive award process and incentive fee structure aim to maximize this effectiveness.

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: $43,941,421

Exercised Options: $31,902,570

Current Obligation: $30,428,226

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline