Labor Department's $49.3M Whitney Young Job Corps Center Contract Awarded to Horizons Youth Services

Contract Overview

Contract Amount: $49,320,228 ($49.3M)

Contractor: Horizons Youth Services, L.C.

Awarding Agency: Department of Labor

Start Date: 2005-09-01

End Date: 2014-07-23

Contract Duration: 3,247 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF WHITNEY B. YOUNG JOB CORPS CENTER

Place of Performance

Location: SIMPSONVILLE, SHELBY County, KENTUCKY, 40067

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $49.3 million to HORIZONS YOUTH SERVICES, L.C. for work described as: OPERATION OF WHITNEY B. YOUNG JOB CORPS CENTER Key points: 1. The contract, valued at $49.3 million, supports the operation of the Whitney B. Young Job Corps Center. 2. Horizons Youth Services, L.C. is the sole awardee, indicating a specific provider for this service. 3. The contract type is Cost Plus Incentive Fee, which can incentivize cost control and performance. 4. The duration of the contract is over 3200 days, suggesting a long-term operational need.

Value Assessment

Rating: fair

The contract is a Cost Plus Incentive Fee type, which allows for shared savings and cost overruns. Without specific performance metrics and final costs, a precise value assessment is difficult. The award amount of $49.3M over its duration suggests a significant investment in job training services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was considered, certain sources were excluded. This method might limit the pool of potential offerors and potentially impact price discovery.

Taxpayer Impact: The significant investment in job training aims to benefit individuals and the economy, but the specific cost-effectiveness relative to outcomes needs further analysis.

Public Impact

Provides vocational training and job placement services to young adults. Supports workforce development initiatives in Kentucky. Aims to reduce unemployment and improve economic opportunities for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method could impact price.
Cost Plus Incentive Fee structure requires careful monitoring of performance and costs.
No indication of small business participation.

Positive Signals

Long-term contract indicates sustained need for services.
Focus on job training aligns with workforce development goals.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' category, which is part of the broader education and training sector. Spending in this sector is often driven by government initiatives to improve workforce skills and address specific labor market needs.

Small Business Impact

The data indicates that small business participation (sb) was false for this contract. This suggests that small businesses were not a primary focus or were not involved in the execution of this particular award.

Oversight & Accountability

The contract's duration and cost necessitate ongoing oversight to ensure performance objectives are met and taxpayer funds are used efficiently. Monitoring the incentive fee structure and operational outcomes is crucial for accountability.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Cost Plus Incentive Fee structure.
Limited competition may have reduced price competitiveness.
Lack of small business participation.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $49.3 million to HORIZONS YOUTH SERVICES, L.C.. OPERATION OF WHITNEY B. YOUNG JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is HORIZONS YOUTH SERVICES, L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $49.3 million.

What is the period of performance?

Start: 2005-09-01. End: 2014-07-23.

What were the specific performance metrics tied to the incentive fee, and how did the contractor perform against them?

The performance metrics for the incentive fee would typically relate to program completion rates, job placement success, participant earnings post-placement, and potentially cost savings achieved. Evaluating the contractor's performance against these specific targets is essential to determine if the incentive fee structure effectively drove desired outcomes and provided value for money.

What was the rationale for excluding certain sources during the full and open competition?

The exclusion of sources in a 'full and open competition after exclusion of sources' scenario usually stems from specific technical requirements, past performance issues, or unique capabilities needed for the service. Understanding the justification for these exclusions is key to assessing whether the competition was truly robust and if the chosen contractor offered the best value proposition.

How does the cost per participant compare to similar Job Corps center operations nationally?

Benchmarking the cost per participant against national averages for similar Job Corps centers is crucial for assessing value. Factors like regional cost of living, specific program offerings, and participant demographics can influence costs. A detailed comparison would reveal if this contract represents an efficient use of resources or if there are opportunities for cost optimization.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Endless Horizons Inc (UEI: 103263760)

Address: 3586 HORIZONS WAY, HARRISONBURG, VA, 22802

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,320,228

Exercised Options: $49,320,228

Current Obligation: $49,320,228

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline