Department of Labor's $107M Keystone Job Corps Center contract awarded to Management & Training Corporation

Contract Overview

Contract Amount: $107,431,803 ($107.4M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2006-05-01

End Date: 2011-05-31

Contract Duration: 1,856 days

Daily Burn Rate: $57.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF KEYSTONE JOB CORPS CENTER

Place of Performance

Location: DRUMS, LUZERNE County, PENNSYLVANIA, 18222

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $107.4 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF KEYSTONE JOB CORPS CENTER Key points: 1. Contract value of $107.4 million over 5 years. 2. Management & Training Corporation is the sole awardee. 3. Potential risks include contractor performance and cost overruns. 4. Spending falls within the 'Other Technical and Trade Schools' sector.

Value Assessment

Rating: fair

The contract's cost-plus-incentive-fee structure allows for shared savings but also potential for cost increases if not managed tightly. Benchmarking against similar Job Corps center operations is needed for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms and their effectiveness in securing the best value are not detailed.

Taxpayer Impact: Taxpayer funds are utilized for job training programs. The effectiveness of this spending depends on the program's success in placing individuals in employment.

Public Impact

Provides job training and employment services to disadvantaged youth. Supports local economy through job creation and contractor spending. Impact on participant employment rates and future earnings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics.
Potential for cost overruns with CPIF contract type.
No indication of small business participation.

Positive Signals

Full and open competition utilized.
Focus on workforce development and youth employment.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' sector, specifically for operating a Job Corps center. Spending benchmarks for similar educational and training service contracts would provide further context.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were explored.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for oversight. The contract's duration and value suggest a need for robust performance monitoring and accountability mechanisms.

Related Government Programs

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

Risk Flags

Contractor performance risk
Cost overrun risk
Lack of small business utilization
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $107.4 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF KEYSTONE 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 $107.4 million.

What is the period of performance?

Start: 2006-05-01. End: 2011-05-31.

What is the historical performance of Management & Training Corporation in operating Job Corps centers?

Historical performance data for Management & Training Corporation in operating Job Corps centers is crucial for assessing future effectiveness. Past performance reviews, participant success rates, and audit findings would provide insights into their capabilities and potential risks associated with this contract.

How does the cost per participant compare to other Job Corps centers or similar training programs?

Comparing the cost per participant is essential for evaluating value for money. Benchmarking against similar government-funded job training programs and other Job Corps centers, considering regional cost differences and program intensity, will reveal if this contract is cost-effective.

What are the key performance indicators (KPIs) for this contract and how is contractor performance measured?

Understanding the key performance indicators and measurement methods is vital for oversight. Specific KPIs related to participant placement rates, retention, wage progression, and program completion, along with the frequency and rigor of performance reviews, will determine the contract's effectiveness.

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 NORTH MARKETPLACE DR, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $3,906,440,314

Exercised Options: $2,398,367,001

Current Obligation: $107,431,803

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline