Department of Labor's $22.3M Wilmington Job Corps Center contract awarded to Management & Training Corporation

Contract Overview

Contract Amount: $22,331,393 ($22.3M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2006-06-01

End Date: 2011-07-31

Contract Duration: 1,886 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF WILMINGTON JOB CORPS CENTER

Place of Performance

Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19802

State: Delaware Government Spending

Plain-Language Summary

Department of Labor obligated $22.3 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF WILMINGTON JOB CORPS CENTER Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract duration of 1886 days indicates a significant, long-term commitment to service delivery. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school operations. 5. The contract's status as a definitive contract suggests a clear scope of work and established terms. 6. The absence of small business set-aside flags indicates the primary award was not specifically targeted for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison to similar Job Corps center operations. The cost-plus-incentive-fee (CPIF) pricing model can lead to cost overruns if not managed carefully, but it also incentivizes efficiency. Without specific performance metrics and outcomes, a definitive value assessment is challenging. The total award amount of $22.3 million over approximately five years suggests a substantial investment in workforce development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally fosters competitive pricing and encourages a wider pool of qualified contractors. The Department of Labor likely sought the best value proposition through this competitive process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it drives down costs through market forces and ensures that the government receives competitive pricing for services.

Public Impact

The primary beneficiaries are students seeking vocational training and employment opportunities through the Job Corps program. The contract facilitates the delivery of educational and career services, including job training, placement assistance, and life skills development. The geographic impact is centered in Wilmington, Delaware, serving the local community's workforce needs. The contract supports the creation and maintenance of jobs within the education and training sector, including instructors, administrators, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep under the CPIF contract if performance incentives are not tightly managed.
Dependence on a single contractor for a significant period may limit flexibility in adapting to changing workforce needs.
The effectiveness of the training programs and their alignment with current labor market demands require ongoing evaluation.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potential for good value.
The long contract duration indicates a stable provider committed to the program's success.
The CPIF structure incentivizes the contractor to meet specific performance targets, potentially leading to improved outcomes.

Sector Analysis

This contract falls within the Education and Training Services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at addressing poverty and improving employment outcomes for at-risk youth. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar workforce development programs administered by federal agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the best overall offer, rather than specifically promoting small business participation in this particular award. Further analysis would be needed to determine if subcontracting opportunities exist within the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures are likely embedded within the Cost Plus Incentive Fee (CPIF) structure, linking contractor payment to performance outcomes. Transparency is generally facilitated through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Workforce Development Initiatives

Risk Flags

Potential for cost overruns inherent in CPIF contracts.
Need for robust performance monitoring to ensure program effectiveness.
Reliance on contractor performance data for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $22.3 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF WILMINGTON 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 $22.3 million.

What is the period of performance?

Start: 2006-06-01. End: 2011-07-31.

What is the historical spending trend for the Wilmington Job Corps Center contract?

The provided data reflects a single definitive contract awarded from June 1, 2006, to July 31, 2011, with a total value of $22,331,393. This represents the spending for that specific contract period. To understand the historical spending trend, one would need to examine previous contracts for the Wilmington Job Corps Center, potentially awarded to different contractors or under different contract types, as well as subsequent contracts awarded after July 2011. Analyzing these past awards would reveal patterns in contract duration, value, and contractor selection over time, providing a clearer picture of the long-term investment in this facility.

How does the performance of Management & Training Corporation compare to other Job Corps center operators?

Assessing the performance of Management & Training Corporation (MTC) for the Wilmington Job Corps Center requires access to specific performance metrics and outcomes data that are not included in the provided contract details. Typically, Job Corps performance is evaluated based on metrics such as student completion rates, job placement rates, starting wages of placed students, and employer satisfaction. To compare MTC's performance, one would need to obtain these specific data points for the Wilmington center during the contract period and benchmark them against national Job Corps averages or the performance of other centers operated by different contractors. Publicly available reports from the Department of Labor or Inspector General audits might offer insights into contractor performance.

What are the key performance indicators (KPIs) tied to the incentive fee in this contract?

The contract type is Cost Plus Incentive Fee (CPIF), which means the contractor's final profit is adjusted based on achieving certain performance targets. While the specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, they typically relate to the core objectives of the Job Corps program. These could include metrics such as student enrollment numbers, on-time program completion rates, the percentage of students achieving specific skill certifications, successful job placement rates within a defined period post-graduation, and the average starting wage of placed students. The incentive fee structure would be designed to reward MTC for exceeding baseline targets for these or similar KPIs, thereby encouraging higher levels of service delivery and student success.

What is the risk associated with the Cost Plus Incentive Fee (CPIF) contract structure for this Job Corps center?

The primary risk associated with a CPIF contract structure, like the one used for the Wilmington Job Corps Center, is the potential for cost overruns if the incentive targets are not carefully defined or if the government's oversight is insufficient. While CPIF aims to incentivize performance, it can also lead to increased costs if the contractor focuses heavily on achieving incentives at the expense of overall cost efficiency or if the baseline cost estimates were inaccurate. There's also a risk that the incentive structure might inadvertently encourage behaviors that are not fully aligned with the broader goals of the Job Corps program. Effective management requires robust monitoring of both performance and costs to ensure value for taxpayer money.

How does the $22.3 million award compare to the average cost of operating a Job Corps center?

The $22.3 million award for the Wilmington Job Corps Center over its 5-year duration (approximately $4.46 million per year) needs to be compared against the average operating costs of similar Job Corps centers to assess its relative value. Average costs can vary significantly based on center size, location, student population served, and the specific mix of training programs offered. To make a meaningful comparison, one would need to consult data from the Department of Labor or independent analyses that track the operational expenditures of various Job Corps centers nationwide. Factors such as the number of students served annually and the intensity of services provided would be crucial for a fair benchmark.

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

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: $1,414,954,804

Exercised Options: $838,446,815

Current Obligation: $22,331,393

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline