Department of Labor's $49.6M contract for youth vocational services awarded to Management & Training Corporation

Contract Overview

Contract Amount: $49,611,414 ($49.6M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2006-02-01

End Date: 2014-08-29

Contract Duration: 3,131 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: PROVIDE VOCATIONAL AND ACADEMIOC SERVICES TO YOUTH AGES 16 TO 24 YEARS OLD

Place of Performance

Location: SEDRO WOOLLEY, SKAGIT County, WASHINGTON, 98284

State: Washington Government Spending

Plain-Language Summary

Department of Labor obligated $49.6 million to MANAGEMENT & TRAINING CORPORATION for work described as: PROVIDE VOCATIONAL AND ACADEMIOC SERVICES TO YOUTH AGES 16 TO 24 YEARS OLD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 8 years indicates a long-term commitment to these services. 3. The use of a Cost Plus Incentive Fee (CPIF) pricing structure suggests a focus on performance and cost control. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools. 5. The contract was awarded to a single vendor, Management & Training Corporation. 6. The contract was awarded in Washington state, indicating a specific geographic focus for service delivery.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The total award amount of $49.6 million over more than 8 years suggests an average annual spend of approximately $6 million. The CPIF pricing structure aims to incentivize cost savings and performance, which can be a good value driver if managed effectively. However, without data on the outcomes achieved for the youth served, a definitive assessment of value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple entities likely vied for the contract. The level of competition can influence pricing by driving down costs as contractors seek to offer the most competitive proposals. The fact that it resulted in a definitive contract with a single awardee implies that one bidder was ultimately selected as the best value.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings. It helps ensure that government funds are used efficiently by selecting the most cost-effective and capable provider.

Public Impact

Provides vocational and academic services to youth aged 16 to 24 years old. Aims to equip young individuals with skills for employment and further education. Services are delivered in Washington state, impacting the local youth population. Potential workforce implications include preparing young people for entry-level jobs and reducing youth unemployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) could lead to vendor complacency if not actively managed.
CPIF contracts require careful monitoring to ensure incentive goals are aligned with program objectives and taxpayer interests.
Lack of specific performance outcome data makes it difficult to assess the true impact and effectiveness of the services provided.

Positive Signals

Awarded through full and open competition, suggesting a competitive market was leveraged.
The CPIF structure incentivizes contractor performance and cost efficiency.
Focus on youth development and vocational training addresses a critical societal need.

Sector Analysis

This contract falls within the Education and Training Services sector, specifically focusing on vocational and technical education for youth. The market for such services involves various educational institutions, non-profits, and private companies specializing in workforce development. Comparable spending benchmarks would typically involve analyzing other government contracts for similar youth training programs, considering factors like the number of participants served and the intensity of services provided. The total award of $49.6 million over its lifespan places it as a significant investment in this area.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the contract itself was not set aside for small businesses, the prime contractor, Management & Training Corporation, may engage small businesses as subcontractors. The extent of subcontracting to small businesses would depend on the contractor's strategy and the nature of the services required. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. As a Cost Plus Incentive Fee (CPIF) contract, it likely involves regular performance reviews and financial audits to ensure compliance with contract terms and to monitor cost efficiency. Transparency would be enhanced through reporting requirements mandated by the contract, detailing services rendered and outcomes achieved. The Inspector General's office for the Department of Labor would have jurisdiction for investigating any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Job Corps Program
YouthBuild Program
Adult Education and Literacy Programs

Risk Flags

Long contract duration may require enhanced oversight to ensure continued effectiveness.
CPIF contracts necessitate careful monitoring of performance metrics and cost controls.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $49.6 million to MANAGEMENT & TRAINING CORPORATION. PROVIDE VOCATIONAL AND ACADEMIOC SERVICES TO YOUTH AGES 16 TO 24 YEARS OLD

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 $49.6 million.

What is the period of performance?

Start: 2006-02-01. End: 2014-08-29.

What specific vocational and academic services are provided under this contract?

The contract's description indicates 'vocational and academic services to youth ages 16 to 24 years old.' While the specific curriculum and training programs are not detailed in the provided data, these services typically encompass job skills training in various trades (e.g., construction, healthcare support, IT), academic remediation (e.g., GED preparation, basic literacy), career counseling, job placement assistance, and sometimes life skills development. The goal is to prepare young individuals for successful entry into the workforce or further education. The exact nature of these services would be elaborated in the detailed contract statement of work.

How does the Cost Plus Incentive Fee (CPIF) structure work for this contract?

A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and also receives a fee that is adjusted based on performance against pre-determined targets. For this Department of Labor contract, the 'cost' portion covers the expenses incurred by Management & Training Corporation in delivering the youth services. The 'incentive fee' is designed to motivate the contractor to meet or exceed specific performance objectives, such as successful job placements, skill attainment levels, or cost savings. If the contractor performs better than expected, the fee increases; if performance is below target, the fee decreases, up to a certain limit. This structure aims to align the contractor's interests with those of the government, promoting efficiency and effectiveness.

What is the historical spending pattern for this specific contract or similar services by the Department of Labor?

The provided data shows a total award of $49,611,414 for this contract, with a start date of 2006-02-01 and an end date of 2014-08-29. This indicates a contract duration of approximately 8 years and 5 months. The total award amount spread over this period suggests an average annual expenditure of roughly $5.8 million ($49.6M / 8.4 years). Without access to the contract's funding modifications or historical obligation data, it's difficult to determine if spending was consistent year-over-year or if there were significant fluctuations. However, the substantial total award indicates a consistent, long-term investment in youth vocational and academic services by the Department of Labor through this specific contract.

What are the key performance indicators (KPIs) used to evaluate Management & Training Corporation's performance?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, given the nature of the services (vocational and academic training for youth) and the CPIF contract type, KPIs would likely focus on measurable outcomes related to participant success. Common KPIs in such programs include: rates of high school equivalency (GED) attainment, successful completion of vocational training programs, acquisition of specific industry-recognized certifications, job placement rates post-program, average wages of placed participants, and participant retention rates. The 'incentive' portion of the CPIF contract would be directly tied to achieving or exceeding targets set for these or similar KPIs.

How does the geographic focus on Washington state impact the service delivery and potential for replication?

The contract's specific award location in Washington state (ST: WA, SN: WASHINGTON) means that the services provided by Management & Training Corporation are geographically targeted to that region. This allows for tailored program delivery that can address the specific needs of youth and the labor market demands within Washington. It also facilitates closer oversight and relationship management between the Department of Labor and the contractor. While the contract itself is geographically limited, the model and lessons learned from its implementation in Washington could potentially inform or be replicated in other states or regions facing similar challenges with youth employment and education, provided the core service model is adaptable.

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: DOLJ06SA00002

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,611,414

Exercised Options: $49,611,414

Current Obligation: $49,611,414

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline