Labor Dept. Spends $20.4M on Kentucky Student Support Services with Insights Training Group

Contract Overview

Contract Amount: $20,370,507 ($20.4M)

Contractor: Insights Training Group, LLC

Awarding Agency: Department of Labor

Start Date: 2006-11-01

End Date: 2014-12-10

Contract Duration: 2,961 days

Daily Burn Rate: $6.9K/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: PROVIDE OA SERVICE IN KY AND ENSURE ARRIVAL OF A MINIMUM OF 1200 STUDENTS INTO THE PROGRAM ANNUALLY. PROVIDE POST CENTER CAREER TRANSITION SERVICES ANNUALLY FOR AVERAGE OF 650 GRADUATES AND 75 FORMER ENROLLEES RETURNING TO KY

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40211

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $20.4 million to INSIGHTS TRAINING GROUP, LLC for work described as: PROVIDE OA SERVICE IN KY AND ENSURE ARRIVAL OF A MINIMUM OF 1200 STUDENTS INTO THE PROGRAM ANNUALLY. PROVIDE POST CENTER CAREER TRANSITION SERVICES ANNUALLY FOR AVERAGE OF 650 GRADUATES AND 75 FORMER ENROLLEES RETURNING TO KY Key points: 1. Contract awarded to Insights Training Group, LLC for $20.4M. 2. Services include student recruitment and post-program career transition. 3. Full and open competition was conducted after excluding sources. 4. The contract spans over 8 years, indicating long-term program support.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. The total award amount of $20.4M over nearly 8 years suggests a significant investment in student support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was intended. However, the exclusion of sources raises questions about the extent of true competition and its impact on price discovery.

Taxpayer Impact: Taxpayer funds are being used to support student recruitment and career transition services, aiming to improve employment outcomes for participants in Kentucky.

Public Impact

Supports an average of 1200 students annually into a program. Provides career transition services for 650 graduates and 75 former enrollees. Aims to improve employment and career prospects for Kentuckians. Long-term contract suggests ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 68 / 10

Warning Flags

Potential for cost overruns with CPIF contract type.
Exclusion of sources may limit competition.
Long contract duration could indicate inflexibility.

Positive Signals

Addresses critical need for student support and career services.
Competitive bidding process was utilized.
Focus on long-term graduate success.

Sector Analysis

This contract falls under 'All Other Support Services' (NAICS 561990), a broad category. The spending of $20.4M over 8 years for student recruitment and career services in Kentucky is substantial for this sector, suggesting a significant state-level initiative.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Department of Labor's Employment and Training Administration, suggesting established oversight mechanisms. However, the duration and CPIF structure warrant close monitoring to ensure funds are used effectively and efficiently.

Related Government Programs

All Other Support Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Contract type (CPIF) can incentivize cost overruns.
Exclusion of sources may have limited competition.
Lack of performance outcome data.
Long contract duration may reduce flexibility.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $20.4 million to INSIGHTS TRAINING GROUP, LLC. PROVIDE OA SERVICE IN KY AND ENSURE ARRIVAL OF A MINIMUM OF 1200 STUDENTS INTO THE PROGRAM ANNUALLY. PROVIDE POST CENTER CAREER TRANSITION SERVICES ANNUALLY FOR AVERAGE OF 650 GRADUATES AND 75 FORMER ENROLLEES RETURNING TO KY

Who is the contractor on this award?

The obligated recipient is INSIGHTS TRAINING GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2006-11-01. End: 2014-12-10.

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

The rationale for excluding sources during the 'full and open competition after exclusion of sources' is not detailed in the provided data. This specific procurement method suggests that while the competition was intended to be broad, certain entities were deemed ineligible or unsuitable for participation based on predefined criteria. Understanding these criteria is crucial for assessing the true level of competition and potential impact on pricing and innovation.

How effectively are the career transition services impacting graduate employment rates?

The effectiveness of the career transition services in impacting graduate employment rates is not directly quantifiable from the provided contract data. While the contract mandates services for 650 graduates and 75 former enrollees annually, it does not include metrics on job placement success, salary levels, or long-term career stability. Performance metrics and outcome data would be necessary to assess the true value and impact of these services.

What is the cost-effectiveness of recruiting 1200 students annually compared to similar programs?

A direct cost-effectiveness comparison for recruiting 1200 students annually is challenging without benchmark data for similar programs. The contract's Cost Plus Incentive Fee structure, coupled with the total award of $20.4M over nearly 8 years, provides a high-level cost. However, to assess cost-effectiveness, one would need to compare the cost per student recruited against industry standards and the program's success rate in retaining and graduating these students.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

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

Address: 4669 DAPPLE COURT, ELLICOTT CITY, MD, 21043

Business Categories: Category Business, Educational Institution, Higher Education, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $128,723,474

Exercised Options: $101,565,343

Current Obligation: $20,370,507

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline