Labor Dept. Awards $117M Vocational Services Contract to YWCA of Greater Los Angeles
Contract Overview
Contract Amount: $117,249,936 ($117.2M)
Contractor: Young Women's Christian Association of Greater LOS Angeles, California
Awarding Agency: Department of Labor
Start Date: 2006-05-01
End Date: 2011-04-30
Contract Duration: 1,825 days
Daily Burn Rate: $64.2K/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 ACADEMIC SERVICE TO YOUTH. OPERATE GOVERNEMTN OWNED FACILITY.
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90015
Plain-Language Summary
Department of Labor obligated $117.2 million to YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER LOS ANGELES, CALIFORNIA for work described as: PROVIDE VOCATIONAL AND ACADEMIC SERVICE TO YOUTH. OPERATE GOVERNEMTN OWNED FACILITY. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract spans 5 years, indicating a long-term need for these services. 3. The award amount of $117.2M is significant for vocational and academic services. 4. The sector is 'Other Technical and Trade Schools', a niche but important area.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. The benchmark of $6.4M per year seems reasonable for vocational services, but the CPIF structure warrants scrutiny.
Cost Per Unit: $6,424,700 per year (estimated)
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the CPIF contract type introduces potential for costs to exceed initial estimates.
Taxpayer Impact: Taxpayers are funding essential vocational and academic services for youth, with the expectation of efficient and effective program delivery.
Public Impact
Provides crucial vocational and academic services to youth, aiding their future employment prospects. Operates a government-owned facility, ensuring dedicated infrastructure for the program. Supports workforce development by equipping young individuals with necessary skills.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to CPIF contract type.
- Lack of specific performance metrics in provided data.
- Government-owned facility operation requires ongoing management and maintenance.
Positive Signals
- Addresses a critical need for youth development and training.
- Awarded through full and open competition.
- Long-term commitment indicates sustained program importance.
Sector Analysis
This contract falls under the 'Other Technical and Trade Schools' category, which is part of the broader education and workforce development sector. Spending in this area aims to equip individuals with specific job skills, contributing to economic growth and reducing unemployment.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it went to the Young Women's Christian Association. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract's duration and cost necessitate robust oversight from the Department of Labor to ensure funds are used effectively and program goals are met. Monitoring the CPIF elements will be crucial for cost control.
Related Government Programs
- Other Technical and Trade Schools
- Department of Labor Contracting
- Employment and Training Administration Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type carries inherent risk of cost overruns.
- Long contract duration (5 years) requires sustained oversight.
- No explicit mention of performance metrics or outcome-based evaluations in the provided data.
- Government-owned facility operation adds complexity and potential maintenance costs.
Tags
other-technical-and-trade-schools, department-of-labor, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $117.2 million to YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER LOS ANGELES, CALIFORNIA. PROVIDE VOCATIONAL AND ACADEMIC SERVICE TO YOUTH. OPERATE GOVERNEMTN OWNED FACILITY.
Who is the contractor on this award?
The obligated recipient is YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER LOS ANGELES, CALIFORNIA.
Which agency awarded this contract?
Awarding agency: Department of Labor (Employment and Training Administration).
What is the total obligated amount?
The obligated amount is $117.2 million.
What is the period of performance?
Start: 2006-05-01. End: 2011-04-30.
What specific vocational and academic outcomes are expected from this contract, and how will they be measured to ensure value for taxpayer money?
The contract aims to provide vocational and academic services to youth, implying goals related to skill acquisition, educational attainment, and subsequent employment. Measuring success would involve tracking graduation rates, job placement statistics, and participant feedback. Without specific performance metrics outlined in the award details, it's difficult to definitively assess the expected value. Robust oversight should focus on establishing and monitoring these key performance indicators.
Given the Cost Plus Incentive Fee (CPIF) structure, what are the primary risks associated with cost control and potential budget overruns?
The CPIF structure incentivizes the contractor to meet certain cost targets while allowing for shared savings or overruns. The primary risk is that the 'incentive' aspect might not sufficiently motivate cost control, or that unforeseen circumstances drive costs significantly higher than anticipated. This necessitates close monitoring by the agency to ensure the contractor is making diligent efforts to manage expenses within reasonable bounds and that the incentive fee structure is appropriately calibrated.
How does the operation of a government-owned facility by a non-profit organization impact the overall effectiveness and cost-efficiency of the program?
Operating a government-owned facility can reduce overhead costs for the contractor compared to leasing space, potentially increasing cost-efficiency. However, it also introduces responsibilities for facility maintenance, security, and utilities, which must be factored into the overall cost. The effectiveness hinges on whether the facility is well-suited to the program's needs and if the YWCA can manage its operation efficiently alongside the educational services.
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: DOLJ06SA00003
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 3345 WILSHIRE BLVD STE 300, LOS ANGELES, CA, 90010
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $265,547,002
Exercised Options: $152,352,478
Current Obligation: $117,249,936
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-05-01
Current End Date: 2011-04-30
Potential End Date: 2011-04-30 00:00:00
Last Modified: 2020-04-24
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