Department of Labor awards $61.3M contract for Delaware Job Corps Center operations to Management & Training Corporation

Contract Overview

Contract Amount: $61,263,839 ($61.3M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2007-04-13

End Date: 2012-07-31

Contract Duration: 1,936 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE DELAWARE JOB CORPS CENTER

Place of Performance

Location: CALLICOON, SULLIVAN County, NEW YORK, 12723

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $61.3 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE DELAWARE JOB CORPS CENTER Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract type (Cost Plus Incentive Fee) allows for flexibility but requires careful monitoring of costs. 3. A duration of 1936 days (over 5 years) indicates a significant, long-term commitment to service provision. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 5. The contract's value of $61.3M over its term suggests substantial investment in workforce development. 6. The awardee, Management & Training Corporation, has a significant role in operating Job Corps centers nationwide.

Value Assessment

Rating: good

The total award amount of $61.3M over approximately 5.3 years equates to roughly $11.5M annually. Benchmarking this against other Job Corps center operations requires access to specific contract data for similar centers. However, the Cost Plus Incentive Fee structure suggests that the government aims to incentivize efficient performance, which can lead to better value if managed effectively. The number of bids (5) indicates a competitive process that likely contributed to a reasonable price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. This indicates that multiple capable contractors were available and interested in providing the services. A competitive process like this generally leads to better price discovery and ensures that the government selects the offer that provides the best value, considering both cost and technical factors.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government obtains services at a fair market price, preventing potential overspending and maximizing the impact of federal funds.

Public Impact

The primary beneficiaries are individuals seeking vocational training and employment services through the Delaware Job Corps program. The contract ensures the continued operation of essential workforce development services, including career training, education, and job placement assistance. Services are geographically focused on Delaware, impacting the local workforce and economy. The contract supports the employment of instructors, administrators, and support staff at the Job Corps center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to cost overruns if not closely monitored for performance against incentives.
The long duration of the contract may reduce flexibility to adapt to changing workforce needs or technological advancements without significant modification.
Reliance on a single contractor for an extended period could potentially lead to complacency if performance management is not rigorous.

Positive Signals

Awarded through full and open competition, indicating a healthy market and likely competitive pricing.
The Cost Plus Incentive Fee structure is designed to reward efficient and effective performance, potentially leading to better outcomes.
The significant investment signals a commitment to workforce development in the region.
The contractor, Management & Training Corporation, has experience in operating Job Corps centers, suggesting operational familiarity.

Sector Analysis

The workforce development sector, particularly vocational training and job placement services, is a critical component of the federal government's strategy to address unemployment and skill gaps. Job Corps centers, funded by the Department of Labor, are a cornerstone of this effort. The market for operating these centers involves specialized education and training providers. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers across the nation, considering regional economic factors and program scope.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. However, large contracts for operating federal facilities often include provisions for small business participation, either directly or through subcontracting opportunities. The extent of small business involvement would depend on the specific terms negotiated and the availability of qualified small businesses in the relevant service areas.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to program specific metrics and reporting requirements. Transparency is generally maintained through contract award databases and public reporting on program outcomes. The Inspector General's office for the Department of Labor would have jurisdiction over investigations of fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Contract duration exceeds 5 years
Cost Plus Incentive Fee contract type
Potential for cost overruns without strict oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $61.3 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE DELAWARE 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 $61.3 million.

What is the period of performance?

Start: 2007-04-13. End: 2012-07-31.

What is the historical spending pattern for the operation of the Delaware Job Corps Center?

The provided data indicates a single award of $61,263,838.88 for the operation of the Delaware Job Corps Center, spanning from April 13, 2007, to July 31, 2012. This represents a period of approximately 5 years and 4 months. To understand the historical spending pattern, one would need to examine previous contracts for this specific center or analyze the aggregate spending on Job Corps center operations nationwide over multiple fiscal years. Without prior contract data for this center, it's difficult to establish a trend or compare year-over-year expenditures. The total value suggests a significant annual investment in the center's operations.

How does the annual cost of this contract compare to the average cost of operating similar Job Corps centers?

The total award of $61.3M over roughly 5.3 years averages to approximately $11.5M per year. To compare this to similar Job Corps centers, we would need data on the annual operating costs of other centers, ideally those of comparable size, scope, and location. Factors such as student enrollment, types of training offered, and local cost of living can significantly influence operational expenses. A comprehensive analysis would involve benchmarking against a cohort of centers with similar characteristics. Without access to that specific comparative data, it's challenging to definitively state whether this contract represents a higher or lower than average cost.

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

While the specific KPIs are not detailed in the provided data, Cost Plus Incentive Fee (CPIF) contracts typically tie a portion of the contractor's fee to achieving specific performance targets. For a Job Corps center, these KPIs likely include metrics related to student enrollment and retention, academic and vocational training completion rates, job placement success rates (both in terms of percentage and wage levels), and potentially student satisfaction. The 'incentive' portion of the fee would be earned by exceeding baseline performance levels on these critical outcomes. Regular reporting and performance reviews by the Department of Labor would track progress against these KPIs.

What is the track record of Management & Training Corporation in operating federal contracts, particularly Job Corps centers?

Management & Training Corporation (MTC) is a significant operator of Job Corps centers and other correctional and workforce training facilities for government agencies. Their track record generally involves managing large-scale operations with a focus on training and employment outcomes. Reviews of MTC's performance often highlight their experience and established processes. However, like any large contractor, they may have faced scrutiny or challenges related to specific contract performance, cost management, or compliance issues at various sites over their history. A thorough assessment would require reviewing specific contract performance evaluations and any public records of disputes or corrective actions.

What are the potential risks associated with a Cost Plus Incentive Fee (CPIF) contract for service operations like this?

CPIF contracts carry inherent risks that require diligent oversight. The primary risk is that the 'cost-plus' nature, even with an incentive fee, can potentially lead to higher overall costs than fixed-price contracts if cost controls are not robust. The government bears the risk of allowable costs, and the contractor is incentivized to perform well. However, defining and measuring the 'incentive' targets accurately is crucial; poorly defined targets can lead to unintended consequences or disputes. There's also a risk that the contractor might focus excessively on achieving incentive targets at the expense of other important, non-incentivized aspects of service delivery. Effective management requires clear communication, rigorous monitoring of costs, and objective evaluation of performance against the incentive criteria.

How does the competition level (5 bidders) impact the value proposition for the government in this contract?

Having five bidders for this contract is a strong indicator of healthy competition within the market for operating Job Corps centers. A higher number of bidders generally leads to more competitive pricing as contractors vie for the award. It also increases the likelihood that the government will receive a wider range of technical approaches and innovative solutions. For the government, this level of competition typically translates into better value for taxpayer dollars, as it drives down prices and encourages higher quality service offerings. It reduces the risk of vendor lock-in and provides a stronger negotiating position for the contracting agency.

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: 1JC07DV

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $111,350,351

Exercised Options: $79,776,811

Current Obligation: $61,263,839

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline