NYC Job Corps Centers Contract Awarded to RES-CARE, INC for $73.5M Over 5 Years

Contract Overview

Contract Amount: $73,539,114 ($73.5M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2006-10-01

End Date: 2012-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $36.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE NYC JOB CORPS CENTERS

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11205

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $73.5 million to RES-CARE, INC for work described as: OPERATION OF THE NYC JOB CORPS CENTERS Key points: 1. Contract value of $73.5M over 5 years for operating NYC Job Corps centers. 2. RES-CARE, INC secured the contract through full and open competition. 3. The contract type is Cost Plus Incentive Fee, indicating shared risk and reward. 4. The sector is Other Technical and Trade Schools, focusing on workforce development.

Value Assessment

Rating: fair

The contract value of $73.5M over 5 years averages to $14.7M annually. Benchmarking against similar contracts for operating educational or training centers would be necessary to fully assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient use of funds for operating these vital job training programs.

Public Impact

Provides essential job training and career services to New York City residents. Supports workforce development and aims to improve employment outcomes for participants. The contract's success directly impacts the quality and accessibility of these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not managed carefully.
Lack of specific performance metrics in the provided data makes it hard to gauge effectiveness.
Small business participation is not indicated, potentially missing opportunities for local economic development.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Long-term contract (5 years) provides stability for service delivery.
Focus on job training addresses critical workforce needs.

Sector Analysis

The contract falls within the 'Other Technical and Trade Schools' sector, which is crucial for workforce development and vocational training. Spending in this sector can vary significantly based on government priorities and economic conditions.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests that the primary focus was on securing a capable provider, potentially overlooking opportunities to engage smaller, specialized firms.

Oversight & Accountability

The contract's duration and value warrant regular oversight from the Employment and Training Administration to ensure performance standards are met and funds are used effectively. Audits and performance reviews are key accountability mechanisms.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Cost Plus Incentive Fee structure.
Lack of specific performance metrics makes outcome assessment difficult.
No indication of small business involvement.
Contract duration is long, requiring sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $73.5 million to RES-CARE, INC. OPERATION OF THE NYC JOB CORPS CENTERS

Who is the contractor on this award?

The obligated recipient is RES-CARE, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $73.5 million.

What is the period of performance?

Start: 2006-10-01. End: 2012-03-31.

What is the average cost per participant for the Job Corps centers under this contract, and how does it compare to national averages?

The provided data does not include participant numbers or per-participant costs. To assess value, a detailed analysis of operational expenses against the number of individuals served would be required. Comparing this to national Job Corps center averages would offer further insight into cost-effectiveness and efficiency.

What are the key performance indicators (KPIs) for RES-CARE, INC under this contract, and what are their performance trends?

The data does not specify the KPIs or performance trends for RES-CARE, INC. Effective oversight would involve tracking metrics such as job placement rates, participant skill attainment, and program completion rates. Without this information, assessing the contractor's effectiveness and the overall success of the program is challenging.

How does the incentive fee structure in this Cost Plus Incentive Fee contract align with achieving desired outcomes for the Job Corps participants?

The incentive fee structure is designed to motivate the contractor to exceed certain performance targets, presumably related to participant success. However, the specific metrics tied to these incentives are not detailed. A clear link between the incentive fee and tangible improvements in participant employment and earnings is crucial for ensuring taxpayer value.

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

Solicitation ID: 1-JC-05-NYC

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carestream Health, Inc. (UEI: 244882650)

Address: 10140 LINN STATION RD, LOUISVILLE, KY, 40223

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $73,600,093

Exercised Options: $73,600,093

Current Obligation: $73,539,114

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline