DOL's $44.6M Old Dominion Job Corps Contract Awarded to RES-CARE, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $44,628,082 ($44.6M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2005-11-01

End Date: 2010-12-31

Contract Duration: 1,886 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF OLD DOMINION JOB CORPS CENTER

Place of Performance

Location: MONROE, AMHERST County, VIRGINIA, 24574

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $44.6 million to RES-CARE, INC for work described as: OPERATION OF OLD DOMINION JOB CORPS CENTER Key points: 1. The contract value is $44.6 million over approximately 5 years. 2. Full and open competition was used, suggesting a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost savings. 4. The sector appears to be education/training, specifically 'Other Technical and Trade Schools'.

Value Assessment

Rating: fair

The contract is a Cost Plus Incentive Fee type, which allows for shared savings if costs are below target. Without specific cost targets or performance metrics, it's difficult to definitively assess value. The base fee structure and incentive mechanisms would be key to understanding true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors were likely considered, promoting price discovery and potentially leading to a more competitive price. The award was a definitive contract, suggesting a single award after the competitive process.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, though the CPIF structure requires monitoring to ensure cost control.

Public Impact

Job Corps centers provide vocational training and education to young adults, impacting workforce development. The operation of these centers is crucial for equipping individuals with skills for employment. This contract supports a significant federal program aimed at improving economic opportunities for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type requires careful oversight to ensure cost efficiency.
Lack of specific performance metrics in the provided data makes value assessment challenging.
No indication of small business participation.

Positive Signals

Full and open competition utilized.
Contract supports a vital workforce development program.
Potential for cost savings through incentive fee structure.

Sector Analysis

The contract falls within the 'Other Technical and Trade Schools' category, part of the broader education and workforce development sector. Spending in this sector is often benchmarked against program outcomes and student success rates, rather than purely cost per unit.

Small Business Impact

The provided data indicates that small business participation was not a factor in this contract (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the requirement precluded small business involvement.

Oversight & Accountability

The contract was awarded by the Department of Labor's Employment and Training Administration. Oversight would focus on ensuring the contractor meets performance standards, manages costs effectively under the CPIF structure, and delivers quality training services to Job Corps participants.

Related Government Programs

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

Risk Flags

Cost Plus Incentive Fee (CPIF) contract type requires diligent oversight.
No explicit mention of small business participation.
Potential for cost overruns if incentives are not well-structured.
Effectiveness metrics (e.g., job placement rates) not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $44.6 million to RES-CARE, INC. OPERATION OF OLD DOMINION JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $44.6 million.

What is the period of performance?

Start: 2005-11-01. End: 2010-12-31.

What were the key performance indicators (KPIs) and target costs established for this CPIF contract, and how did RES-CARE, Inc. perform against them?

The effectiveness of a Cost Plus Incentive Fee (CPIF) contract hinges on clearly defined Key Performance Indicators (KPIs) and target costs. Without this information, it's impossible to assess if RES-CARE, Inc. achieved optimal value or if the incentive structure successfully drove cost efficiencies and performance improvements for the Old Dominion Job Corps Center. Detailed performance reports and audit trails are necessary for a thorough evaluation.

What was the competitive landscape for this contract, and did the full and open competition result in demonstrably better pricing or service quality compared to potential sole-source alternatives?

While 'full and open competition' suggests a robust bidding process, its true impact on value is determined by the number and quality of bids received. If multiple qualified vendors competed, it likely led to competitive pricing and service offerings. However, without comparative data on bid prices, proposed services, and the specific needs of the Job Corps program, it's difficult to definitively state if this method yielded superior outcomes compared to other potential contracting approaches.

How effectively did the Old Dominion Job Corps Center, operated by RES-CARE, Inc., contribute to the employment and training goals of the Department of Labor during the contract period?

The ultimate measure of success for this contract lies in its contribution to the Department of Labor's mission of workforce development. Evaluating effectiveness requires analyzing metrics such as participant graduation rates, job placement success, post-placement earnings, and the long-term career trajectories of Job Corps graduates. Data on these outcomes, alongside participant satisfaction surveys, would provide a comprehensive picture of the center's impact.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carestream Health, Inc. (UEI: 244882650)

Address: 10140 LINN STATION RD, LOUISVILLE, KY, 40223

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $837,566,185

Exercised Options: $758,258,197

Current Obligation: $44,628,082

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline