Department of Labor's Flint Hills Job Corps Center contract awarded to Management & Training Corporation for $39.6M

Contract Overview

Contract Amount: $39,648,221 ($39.6M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2006-08-01

End Date: 2011-10-31

Contract Duration: 1,917 days

Daily Burn Rate: $20.7K/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 FLINT HILLS JOB CORPS CENTER

Place of Performance

Location: MANHATTAN, RILEY County, KANSAS, 66503

State: Kansas Government Spending

Plain-Language Summary

Department of Labor obligated $39.6 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE FLINT HILLS JOB CORPS CENTER Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 2. The duration of nearly five years suggests a stable, long-term need for the services provided. 3. The absence of small business set-asides or subcontracting requirements warrants further investigation into broader economic impact. 4. The contract's focus on operating a Job Corps center highlights a commitment to workforce development and vocational training. 5. The award was made under full and open competition, indicating a potentially competitive bidding process.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable Job Corps center operating costs. The cost-plus-incentive-fee (CPIF) pricing structure suggests that the government sought to incentivize efficient performance, but the final cost is dependent on achieving certain targets. Without data on the contractor's performance against these targets, a definitive value assessment is difficult. The total award amount of $39.6 million over approximately five years indicates a significant investment in workforce development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach is generally favored for ensuring fair pricing and access to the best available services. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity. However, the fact that it was competed openly implies that the Department of Labor sought to leverage market forces to secure a capable contractor for operating the Flint Hills Job Corps Center.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better service delivery.

Public Impact

The primary beneficiaries are the students enrolled in the Flint Hills Job Corps Center, who receive vocational training and educational services. The contract delivers essential services for workforce development, aiming to equip individuals with skills for employment. The geographic impact is concentrated in Kansas, where the Flint Hills Job Corps Center is located. Workforce implications include the employment of staff at the center and the subsequent employment of graduates in the local and regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on the number of bidders in the full and open competition limits assessment of true price discovery.
Absence of specific performance metrics makes it difficult to evaluate the 'incentive' aspect of the CPIF contract and its effectiveness.
No indication of small business participation or subcontracting requirements could mean missed opportunities for smaller firms in the supply chain.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The use of a Cost Plus Incentive Fee (CPIF) contract indicates a structured approach to performance management and cost control.
The contract duration of nearly five years suggests a stable and ongoing commitment to the Job Corps program in Kansas.

Sector Analysis

The contract falls within the 'Other Technical and Trade Schools' (NAICS 611519) sector, which is part of the broader education and training services industry. This sector focuses on providing vocational and technical education to prepare individuals for specific occupations. The market for such services is driven by workforce needs and government initiatives aimed at improving employment outcomes. Comparable spending benchmarks would involve analyzing other Job Corps center contracts or similar government-funded vocational training programs.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, nor is there explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing a qualified large contractor to operate the center. The absence of mandated small business participation could limit opportunities for smaller firms to engage in providing support services for the Job Corps center, potentially impacting the broader small business ecosystem involved in government contracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to program-specific regulations governing Job Corps centers. The CPIF structure itself implies oversight through the monitoring of performance metrics tied to incentive payments. Transparency regarding specific oversight activities and their findings would be crucial for a comprehensive assessment.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Training Grants
Vocational Education Contracts

Risk Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if performance targets are not met efficiently.
Risk of service disruption if contractor fails to meet performance standards.
Dependence on a single contractor for essential workforce development services.
Limited visibility into specific performance metrics and outcomes without further documentation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $39.6 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE FLINT HILLS 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 $39.6 million.

What is the period of performance?

Start: 2006-08-01. End: 2011-10-31.

What was the specific performance criteria used for the incentive fee in this Cost Plus Incentive Fee (CPIF) contract?

The provided data does not specify the exact performance criteria tied to the incentive fee for the Flint Hills Job Corps Center contract. CPIF contracts typically link incentive payments to achieving specific, measurable outcomes such as student completion rates, job placement success, cost savings, or quality of training delivered. The Department of Labor's Employment and Training Administration would have established these metrics in the contract's statement of work and award fee plan. Without access to these detailed contract documents, it is impossible to ascertain the precise targets that Management & Training Corporation needed to meet to earn incentive fees. This information is crucial for evaluating the effectiveness of the incentive structure in driving desired performance and ensuring value for taxpayer money.

How does the total contract value of $39.6 million compare to other Job Corps center operations contracts?

Comparing the $39.6 million total award value for the Flint Hills Job Corps Center contract requires context regarding the size and scope of the center, its student capacity, and the duration of the contract. Job Corps centers vary significantly in their operational scale. A contract of this magnitude over approximately five years suggests a medium to large-sized center. To provide a meaningful comparison, one would need to analyze data from other Job Corps center contracts awarded by the Department of Labor, normalizing for factors like student enrollment numbers, geographic location (which can influence cost of living and labor), and the specific services offered (e.g., number of trades taught). Without such a detailed benchmark analysis, it's difficult to definitively state whether this contract represents a particularly high, low, or average investment relative to its peers.

What is Management & Training Corporation's track record in operating Job Corps centers or similar government-funded training programs?

Management & Training Corporation (MTC) is a significant operator of correctional facilities and Job Corps centers. A review of their performance history would involve examining past contract awards, performance evaluations, and any reported issues or successes in managing similar government programs. Information from sources like the Government Accountability Office (GAO) reports, Inspector General audits, and contract performance databases (e.g., Federal Procurement Data System) could shed light on MTC's reliability, efficiency, and effectiveness. Understanding their past performance is critical for assessing the risk associated with this particular contract and for evaluating the likelihood of successful program delivery.

What were the key risks identified during the procurement process for this contract, and how were they mitigated?

The provided data does not detail the specific risks identified during the procurement process for the Flint Hills Job Corps Center contract. However, typical risks associated with operating a Job Corps center include ensuring student safety and well-being, maintaining high educational and vocational training standards, achieving successful student placement in employment or further education, managing operational costs effectively, and complying with complex federal regulations. Mitigation strategies would likely have been outlined in the solicitation documents and addressed by bidders in their proposals. These could include robust safety protocols, qualified staffing, comprehensive student support services, and detailed financial management plans. The use of a CPIF contract also suggests an attempt to mitigate cost overrun risks by incentivizing efficiency.

How has federal spending on Job Corps centers evolved over the years, and where does this contract fit into that trend?

Federal spending on the Job Corps program has fluctuated over the years, influenced by budget appropriations, administration priorities, and economic conditions. The program aims to provide comprehensive education and vocational training to disadvantaged youth. This specific contract, awarded in 2006 and ending in 2011, represents a portion of the overall federal investment during that period. To understand its place in the trend, one would need to analyze historical budget data for the Job Corps program, looking at total appropriations and the number and value of center operation contracts awarded annually. This would help determine if spending on centers like Flint Hills was increasing, decreasing, or stable during that timeframe and whether the contract's value was typical for centers of its size.

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: DOLJ06RA00009

Offers Received: 1

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: $41,714,611

Exercised Options: $41,714,611

Current Obligation: $39,648,221

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline