Department of Labor's $87.3M Job Corps Contract Awarded to MINACT, INC. Faces Scrutiny

Contract Overview

Contract Amount: $87,344,014 ($87.3M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2006-05-01

End Date: 2014-08-08

Contract Duration: 3,021 days

Daily Burn Rate: $28.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE ST. LOUIS JOB CORPS CENTER (AND SATELLITE)IN ST. LOUIS, MISSOURI

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63120

State: Missouri Government Spending

Plain-Language Summary

Department of Labor obligated $87.3 million to MINACT, INC for work described as: OPERATION OF THE ST. LOUIS JOB CORPS CENTER (AND SATELLITE)IN ST. LOUIS, MISSOURI Key points: 1. The contract, valued at $87.3 million, was awarded to MINACT, INC. for operating the St. Louis Job Corps Center. 2. Awarded under full and open competition, the contract utilized a Cost Plus Incentive Fee (CPIF) pricing structure. 3. The duration of the contract was 3021 days, indicating a long-term commitment for services. 4. The absence of small business participation is noted, potentially limiting broader economic impact. 5. The contract's performance period spans from 2006 to 2014, requiring an assessment of its historical effectiveness.

Value Assessment

Rating: fair

The Cost Plus Incentive Fee (CPIF) structure allows for shared savings and cost overruns, which can incentivize efficiency but also carries inherent risk if not closely monitored. Benchmarking against similar Job Corps center operations would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for soliciting bids. However, the CPIF structure requires careful oversight to ensure fair pricing and prevent cost escalation.

Taxpayer Impact: The significant investment of $87.3 million aims to provide job training, with the CPIF structure intended to optimize resource utilization and taxpayer value.

Public Impact

Provides essential job training and vocational services to individuals in St. Louis, Missouri. The long contract duration suggests a sustained effort in workforce development. Potential for economic uplift through skills development and increased employability of participants. The contract's effectiveness in achieving its training and placement goals needs evaluation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Potential for cost overruns with CPIF structure
Need for performance effectiveness review

Positive Signals

Awarded through full and open competition
Focus on critical job training services

Sector Analysis

The 'Other Technical and Trade Schools' sector (NAICS 611519) encompasses institutions providing vocational and technical training. Spending in this area is crucial for workforce development, and benchmarks would typically focus on cost per student, completion rates, and job placement success.

Small Business Impact

The contract data indicates no specific set-aside for small businesses (ss: false, sb: false). This means opportunities for small business contractors were not explicitly prioritized, potentially limiting their involvement in delivering these vital training services.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight is crucial, especially with a CPIF contract, to ensure performance standards are met and taxpayer funds are used efficiently.

Related Government Programs

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

Risk Flags

Lack of small business participation
Potential for cost overruns with CPIF
Need for performance effectiveness review
Long contract duration requires sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $87.3 million to MINACT, INC. OPERATION OF THE ST. LOUIS JOB CORPS CENTER (AND SATELLITE)IN ST. LOUIS, MISSOURI

Who is the contractor on this award?

The obligated recipient is MINACT, 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 $87.3 million.

What is the period of performance?

Start: 2006-05-01. End: 2014-08-08.

What were the key performance indicators (KPIs) for the St. Louis Job Corps Center under MINACT, INC.'s contract, and how effectively were they met?

Key performance indicators likely included student enrollment, course completion rates, job placement success, and participant earnings post-placement. Evaluating MINACT, INC.'s performance against these metrics is crucial to determine the contract's value. Without specific performance data, it's difficult to definitively assess if the $87.3 million investment yielded optimal outcomes in workforce development and participant success.

What specific cost drivers contributed to the $87.3 million total obligation, and how did the CPIF structure influence cost management?

Cost drivers likely included personnel, facility operations, training materials, and student support services. The CPIF structure aimed to incentivize MINACT, INC. to control costs by sharing in any savings below a target, while also sharing in overruns above it. Effective management would depend on the baseline cost targets and the incentive rates negotiated.

How did the full and open competition process ensure the best value was obtained for the taxpayer, considering the CPIF contract type?

Full and open competition theoretically ensures a wide range of potential contractors can compete, driving down prices and improving quality. For a CPIF contract, the competition likely focused on the proposed technical approach, management plan, and initial cost estimates. The government's evaluation criteria would be critical in selecting the offeror most likely to provide effective services at a reasonable cost, with the CPIF structure managing ongoing financial risk.

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: DOLJ06RA00007

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 5220 KEELE ST, JACKSON, MS, 39206

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $87,344,014

Exercised Options: $87,344,014

Current Obligation: $87,344,014

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline