Labor Department awards $26.8M contract for Loring Job Corps Center training and development

Contract Overview

Contract Amount: $26,807,647 ($26.8M)

Contractor: Training and Development Corporation

Awarding Agency: Department of Labor

Start Date: 2006-07-01

End Date: 2008-06-30

Contract Duration: 730 days

Daily Burn Rate: $36.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: LORING JOB CORPS CENTER

Place of Performance

Location: LIMESTONE, AROOSTOOK County, MAINE, 04750

State: Maine Government Spending

Plain-Language Summary

Department of Labor obligated $26.8 million to TRAINING AND DEVELOPMENT CORPORATION for work described as: LORING JOB CORPS CENTER Key points: 1. Contract value represents a significant investment in vocational training and workforce development. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of two years provides a stable period for service delivery. 4. The specific technical area (NAICS 611519) indicates a focus on specialized trade education. 5. Geographic location in Maine may influence local workforce development and economic impact.

Value Assessment

Rating: fair

The contract value of $26.8 million over two years for the Loring Job Corps Center appears to be within a reasonable range for comprehensive training and development services. Benchmarking against similar Job Corps center contracts would provide a clearer picture of value for money. The Cost Plus Incentive Fee (CPIF) pricing structure suggests an effort to incentivize performance and cost control, which can be beneficial if managed effectively. However, without detailed cost breakdowns and performance metrics, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. With three bidders participating, the competition level suggests a reasonable degree of market interest. This open competition is generally expected to foster price discovery and encourage contractors to offer competitive terms. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified providers, maximizing the use of public funds.

Public Impact

The primary beneficiaries are students seeking vocational training and career development opportunities at the Loring Job Corps Center. The contract delivers essential training services aimed at equipping individuals with skills for in-demand occupations. The geographic impact is concentrated in Maine, potentially boosting the local economy through job creation and skill development. Workforce implications include the training of a new generation of skilled workers and support for the regional labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the Cost Plus Incentive Fee structure if not closely monitored.
Ensuring consistent quality of training across all programs and instructors.
Measuring the long-term success and employment outcomes of program graduates.
Adapting training curricula to meet evolving industry demands and technological advancements.

Positive Signals

Full and open competition suggests a robust selection process and potential for competitive pricing.
The Cost Plus Incentive Fee structure can motivate contractor performance and efficiency.
The contract supports a vital federal program focused on youth development and workforce readiness.
The established duration of the contract provides stability for program operations and student enrollment.

Sector Analysis

The contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at addressing the needs of at-risk youth. Comparable spending benchmarks would involve analyzing other Job Corps center contracts and similar government-funded workforce development programs. The market for such services is characterized by specialized training providers, educational institutions, and non-profit organizations.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As this was a full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors. Further investigation into the subcontracting reports, if available, would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures would be embedded within the Cost Plus Incentive Fee contract terms, performance standards, and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting, although detailed operational oversight specifics are often internal.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Education Grants

Risk Flags

Potential for cost overruns with CPIF structure.
Need for robust performance monitoring to ensure training quality.
Ensuring long-term graduate success and employment outcomes.
Adaptability of training to changing labor market needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $26.8 million to TRAINING AND DEVELOPMENT CORPORATION. LORING JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is TRAINING AND DEVELOPMENT 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 $26.8 million.

What is the period of performance?

Start: 2006-07-01. End: 2008-06-30.

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

The provided data reflects a single contract award of $26,807,647 to Training and Development Corporation for the Loring Job Corps Center, spanning from July 1, 2006, to June 30, 2008. This represents a two-year period. To understand the historical spending trend, one would need to examine previous contracts awarded for the operation of the Loring Job Corps Center, potentially from different contractors or for different service periods. Analyzing the total amount obligated and expended over multiple fiscal years would reveal any patterns of increase or decrease in federal investment in this specific center. Without access to prior contract data, it is impossible to establish a trend based solely on this single award.

How does the awarded amount compare to the average cost of operating a Job Corps center?

The awarded amount of approximately $26.8 million over two years, averaging $13.4 million per year, provides a basis for comparison with other Job Corps centers. The average cost of operating a Job Corps center can vary significantly based on factors such as location, size, student population, and the scope of training programs offered. Generally, larger centers in high-cost-of-living areas or those offering a wider array of specialized vocational training might incur higher operational costs. To accurately benchmark this contract, one would need to consult recent reports or data from the Department of Labor detailing the operational budgets and expenditures of other Job Corps centers nationwide. This would allow for an assessment of whether the $13.4 million annual average for Loring is considered high, low, or typical within the broader Job Corps network.

What are the key performance indicators (KPIs) used to evaluate the contractor's success under this CPIF contract?

Under a Cost Plus Incentive Fee (CPIF) contract, Key Performance Indicators (KPIs) are crucial for determining incentive payouts and assessing overall contractor success. While specific KPIs are not detailed in the provided data, typical metrics for Job Corps center operations often include student enrollment rates, retention rates, completion rates for vocational programs, job placement rates post-graduation, and average post-placement earnings. The CPIF structure would likely tie a portion of the contractor's fee to achieving or exceeding targets in these areas. For instance, higher job placement rates or successful completion of training programs could trigger higher incentive fees for the contractor, while failing to meet minimum standards might reduce the fee. Effective oversight by the Department of Labor would involve rigorous tracking and verification of these KPIs.

What is the track record of Training and Development Corporation in managing federal contracts, particularly within the Job Corps program?

The provided data indicates that Training and Development Corporation (TDC) was awarded this specific contract for the Loring Job Corps Center. To assess TDC's track record, a broader review of their contract history with the federal government, particularly the Department of Labor and other agencies involved in workforce development, would be necessary. This would involve examining past performance evaluations, any documented contract disputes or terminations, and the overall success of their previous projects. Information on their experience managing other Job Corps centers or similar large-scale training initiatives would be particularly relevant. A comprehensive understanding of their past performance is essential for evaluating their reliability and capability in fulfilling the current contract's objectives.

What are the potential risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this service?

The Cost Plus Incentive Fee (CPIF) contract type, while designed to incentivize performance and cost control, carries inherent risks. A primary risk is the potential for cost growth if the target cost is set too high or if the contractor is highly effective at managing costs to achieve higher incentive fees, potentially leading to overall higher expenditures than anticipated. There's also a risk that the incentive structure might inadvertently encourage the contractor to focus on easily measurable, lower-cost outcomes at the expense of more complex but potentially more impactful services. Furthermore, defining and measuring the 'incentive' metrics accurately and fairly can be challenging, leading to disputes. Effective government oversight is critical to mitigate these risks by ensuring realistic target costs and appropriate performance metrics.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1-JC-05-LORING

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 118 SCHOOL STREET, BUCKSPORT, ME, 04416

Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,955,289

Exercised Options: $41,955,289

Current Obligation: $26,807,647

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline