Department of Labor awards $14.8M contract for outreach and career transition services to C H P INTERNATIONAL, INC

Contract Overview

Contract Amount: $14,784,677 ($14.8M)

Contractor: C H P International, Inc.

Awarding Agency: Department of Labor

Start Date: 2006-04-01

End Date: 2011-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: MISSISSIPPI AND TENNESSEE OUTREACH, ADMISSIONS (TN ONLY) AND CAREER TRANSITION SERVICES

Place of Performance

Location: JACKSON, HINDS County, MISSISSIPPI, 39206

State: Mississippi Government Spending

Plain-Language Summary

Department of Labor obligated $14.8 million to C H P INTERNATIONAL, INC. for work described as: MISSISSIPPI AND TENNESSEE OUTREACH, ADMISSIONS (TN ONLY) AND CAREER TRANSITION SERVICES Key points: 1. Contract awarded for comprehensive outreach, admissions, and career transition services. 2. Services primarily focused on beneficiaries in Mississippi and Tennessee. 3. Contract duration spans over five years, from April 2006 to September 2011. 4. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives. 5. This award represents a significant investment in workforce development and support services. 6. The North American Industry Classification System (NAICS) code 561990 indicates 'All Other Support Services'.

Value Assessment

Rating: fair

The contract value of $14.8 million over five years averages approximately $2.96 million annually. Benchmarking this against similar workforce development and career transition service contracts is challenging without more specific service details and geographic scope. However, the Cost Plus Incentive Fee structure implies a focus on achieving specific performance targets, which can be a good value indicator if those targets are met and lead to successful outcomes for participants. The raw dollar amount alone does not indicate value; it is the effectiveness of the services delivered that will determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of six bids (no=6) suggests a reasonably competitive environment for this type of service. A competitive process generally helps in achieving fair market pricing and encourages contractors to offer their best value propositions. The specific details of the bidding process and the number of qualified bidders would further illuminate the strength of the competition.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it promotes a competitive marketplace, which typically leads to more cost-effective solutions and better service delivery by driving down prices and improving quality.

Public Impact

Individuals in Mississippi and Tennessee seeking employment assistance and career transition services are the primary beneficiaries. The services delivered aim to support individuals in their job search, admissions processes, and overall career development. The geographic impact is concentrated in Mississippi and Tennessee, addressing specific regional workforce needs. The contract likely has implications for the local workforce, potentially creating or sustaining jobs within the service provider's organization and supporting the re-employment of participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Incentive Fee (CPIF) contract type can lead to cost overruns if not managed tightly, as the government reimburses costs plus a fee that can increase with performance.
The duration of the contract (over 5 years) requires sustained oversight to ensure continued effectiveness and value.
Without specific performance metrics and outcomes, it's difficult to fully assess the effectiveness and efficiency of the services provided.
The 'All Other Support Services' NAICS code is broad, making it harder to pinpoint specific service quality benchmarks.

Positive Signals

The award was made through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The Cost Plus Incentive Fee structure incentivizes the contractor to meet or exceed performance goals, which can lead to better outcomes for service recipients.
The contract addresses critical workforce development needs in specific states, indicating a targeted and potentially impactful government initiative.
The existence of six bids suggests a healthy market interest and capability for providing these services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under support services. The market for workforce development and career transition services is driven by government funding and the need to assist individuals in adapting to changing labor market demands. Comparable spending benchmarks would depend on the specific nature of the outreach, admissions, and career transition services, but this $14.8 million award over five years represents a substantial commitment to these functions within the specified states.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss=false, sb=false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if C H P INTERNATIONAL, INC. chose to engage them. Without explicit subcontracting plans or goals, it's difficult to assess the direct impact on the small business ecosystem. The focus appears to be on the prime contractor's ability to deliver the required services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures would be tied to the Cost Plus Incentive Fee contract terms, requiring the contractor to meet defined performance objectives. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General's office within the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Workforce Investment Act Programs
Job Corps
Adult Education and Family Literacy
Wagner-Peyser Act Employment Service
Trade Adjustment Assistance

Risk Flags

Contract Duration
Cost Plus Incentive Fee Structure
Lack of Specific Performance Metrics
Broad NAICS Code

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $14.8 million to C H P INTERNATIONAL, INC.. MISSISSIPPI AND TENNESSEE OUTREACH, ADMISSIONS (TN ONLY) AND CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is C H P INTERNATIONAL, 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 $14.8 million.

What is the period of performance?

Start: 2006-04-01. End: 2011-09-30.

What specific performance metrics were used to evaluate C H P INTERNATIONAL, INC. under this Cost Plus Incentive Fee contract?

The provided data does not specify the exact performance metrics used for this Cost Plus Incentive Fee (CPIF) contract. Typically, CPIF contracts link a portion of the contractor's fee to achieving predetermined performance targets. For outreach, admissions, and career transition services, these metrics could include factors such as the number of individuals successfully enrolled, the completion rates of training programs, the percentage of participants placed in employment, average time to placement, and participant satisfaction surveys. The 'incentive' aspect means the fee would be adjusted based on how well C H P INTERNATIONAL, INC. performed against these benchmarks. Without access to the contract's Statement of Work (SOW) or performance work statement (PWS), these specific metrics remain unknown.

How does the $14.8 million contract value compare to similar workforce development contracts awarded by the Department of Labor?

Comparing the $14.8 million contract value requires context regarding the scope, duration, and specific services. This contract, awarded in 2006 for a period of over five years, averages roughly $2.96 million annually. The Department of Labor awards numerous contracts for workforce development, ranging from large-scale job training initiatives to smaller, localized support services. A contract of this magnitude suggests a significant regional focus or a comprehensive service offering. To provide a precise comparison, one would need to analyze contracts with similar objectives (outreach, admissions, career transition), geographic coverage (state-level or multi-state), and target populations. Without such detailed comparative data, it's difficult to definitively state whether $14.8 million is high or low relative to similar procurements.

What were the primary risks associated with this contract, and how were they mitigated?

Potential risks for a contract like this include contractor underperformance, cost overruns due to the CPIF structure, and failure to meet the needs of the target population. Underperformance could manifest as low enrollment numbers, poor job placement rates, or dissatisfaction among participants. Cost overruns are a risk with any cost-reimbursement type contract, even with incentives, if initial cost estimates are inaccurate or if unforeseen circumstances drive up expenses. Mitigation strategies would typically involve robust contract oversight by the Department of Labor, clear performance metrics defined in the contract, regular progress reviews, and potentially financial penalties or incentives tied to specific outcomes. The competitive bidding process itself also serves as a risk mitigation tool by selecting a contractor deemed most capable.

What was the historical spending pattern for similar outreach and career transition services by the Department of Labor prior to this award?

The provided data does not include historical spending patterns for similar services. To assess this, one would need to examine previous contract awards by the Department of Labor (specifically the Employment and Training Administration) for outreach, admissions, and career transition services in Mississippi, Tennessee, or nationally. Analyzing spending trends over several fiscal years would reveal whether this $14.8 million award represents an increase, decrease, or stable level of investment in these types of services. It would also help identify which contractors were previously awarded similar work and at what value, providing context for the current procurement.

How effective was C H P INTERNATIONAL, INC. in delivering the contracted services, based on performance data?

The provided data does not include performance outcomes or effectiveness metrics for C H P INTERNATIONAL, INC. under this contract. To assess effectiveness, one would need to review post-award performance reports, data on participant outcomes (e.g., job placement rates, wage increases, retention in employment), and potentially participant satisfaction surveys. The fact that it was a Cost Plus Incentive Fee contract suggests that performance was a key consideration, and the contractor's fee could have been adjusted based on achieving certain goals. However, without access to these specific performance evaluations, the effectiveness of the services delivered remains undetermined from the given information.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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: J06UA00010

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1040 NORTH BOULEVARD SUITE 220, OAK PARK, IL, 60301

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,784,677

Exercised Options: $14,784,677

Current Obligation: $14,784,677

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline