Department of Labor's $36.8M Philadelphia Job Corps Center Contract Awarded to Management & Training Corporation

Contract Overview

Contract Amount: $36,779,501 ($36.8M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2006-09-01

End Date: 2011-11-30

Contract Duration: 1,916 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF PHILADELPHIA JOB CORPS CENTER

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19139

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $36.8 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF PHILADELPHIA JOB CORPS CENTER Key points: 1. Contract awarded to Management & Training Corporation for operating the Philadelphia Job Corps Center. 2. The contract value is approximately $36.8 million over its duration. 3. This contract falls under the 'Other Technical and Trade Schools' NAICS code. 4. The contract was awarded via full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. The award amount of $36.8M over approximately 5 years needs further benchmarking against similar center operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair pricing for taxpayer funds, though the CPIF structure warrants monitoring for efficiency.

Public Impact

Job Corps centers provide vocational training and education to young people, impacting workforce development. The operation of this center directly affects the local Philadelphia community and its youth. Contract performance will influence the quality and accessibility of training programs for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can incentivize higher costs.
No indication of small business participation.
Contract duration is substantial, requiring ongoing oversight.

Positive Signals

Awarded via full and open competition.
Supports a valuable federal workforce development program.

Sector Analysis

The education and training sector, particularly vocational programs like Job Corps, is crucial for workforce development. Spending benchmarks for similar center operations would provide better context for this $36.8M award.

Small Business Impact

The provided data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were offered to small businesses.

Oversight & Accountability

The Department of Labor, through the Employment and Training Administration, is responsible for overseeing this contract. Robust oversight is essential, especially with a CPIF contract, to ensure program effectiveness and fiscal responsibility.

Related Government Programs

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

Risk Flags

Cost Plus Incentive Fee contract type.
No small business participation noted.
Lack of specific performance metrics in provided data.
Potential for cost overruns without strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $36.8 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF PHILADELPHIA 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 $36.8 million.

What is the period of performance?

Start: 2006-09-01. End: 2011-11-30.

What is the historical performance of Management & Training Corporation in operating Job Corps centers, and how does it compare to industry benchmarks?

Assessing M&T's past performance is crucial for understanding their capability to effectively manage the Philadelphia Job Corps Center. Benchmarking their operational efficiency, student outcomes, and cost-effectiveness against other Job Corps centers and similar vocational training programs will reveal if this contract represents good value. This analysis should consider graduation rates, job placement success, and adherence to budget.

What are the specific performance metrics and incentive structures within the Cost Plus Incentive Fee (CPIF) contract, and how are they designed to mitigate risk and ensure value?

The CPIF structure requires detailed examination of the target cost, incentive fee formula, and ceiling price. Understanding the specific metrics tied to the incentive fee (e.g., student completion rates, job placement success, cost savings) is vital. Effective oversight must ensure these metrics align with program goals and that the incentive structure genuinely drives efficiency and quality, rather than just cost escalation.

How does the operational cost per student for this Philadelphia Job Corps Center compare to other similar centers nationwide, and what factors contribute to any significant differences?

A comparative analysis of the cost per student is essential for evaluating the financial efficiency of this contract. Identifying the total contract cost divided by the number of students served will provide a baseline. Investigating variations in operating expenses, such as facility costs, staffing levels, program offerings, and local economic factors, will help explain any discrepancies and determine if the current spending is justified or if cost-saving opportunities exist.

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: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,069,724,684

Exercised Options: $655,739,562

Current Obligation: $36,779,501

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline