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

State: California Government Spending

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

Positive Signals

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

Risk Flags

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 ServicesTechnical and Trade SchoolsOther Technical and Trade Schools

Product/Service Code: EDUCATION AND TRAININGEDUCATION 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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