Department of Labor awards $79.6M contract for youth vocational training facility to Management & Training Corporation

Contract Overview

Contract Amount: $79,630,278 ($79.6M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2007-02-01

End Date: 2011-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $54.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATE RESIDENTIAL VOCATIONAL AND ACADEMIC TRAINING FACILITY FOR YOUTH AGES 16 - 24.

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89506

State: Nevada Government Spending

Plain-Language Summary

Department of Labor obligated $79.6 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATE RESIDENTIAL VOCATIONAL AND ACADEMIC TRAINING FACILITY FOR YOUTH AGES 16 - 24. Key points: 1. The contract focuses on operating a residential vocational and academic training facility for youth. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee, which can incentivize cost control but also carries risk. 4. The sector appears to be education/workforce development, with a specific NAICS code of 611519.

Value Assessment

Rating: fair

The contract value of $79.6M over approximately 4 years suggests a significant investment in youth development services. Benchmarking against similar training facilities would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are being used to provide essential training and support services to at-risk youth, aiming for improved long-term outcomes and reduced societal costs.

Public Impact

Provides critical vocational and academic training to young individuals. Aims to improve employment prospects and life skills for participants. Operates a residential facility, offering comprehensive support. Contract duration of approximately 4 years allows for program stability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can lead to cost overruns if not managed carefully.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
Small business participation is not indicated, potentially missing opportunities for smaller entities.

Positive Signals

Full and open competition suggests a potentially competitive price.
Focus on youth development addresses a critical societal need.
Long-term contract duration provides program continuity.

Sector Analysis

The contract falls within the education and workforce development sector, specifically focusing on technical and trade schools. Spending benchmarks for similar youth training programs would provide further context for the $79.6M award.

Small Business Impact

The provided data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and opportunities for subcontracting to small businesses are not explicitly detailed.

Oversight & Accountability

Oversight would typically be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. The effectiveness of oversight depends on regular performance reviews, financial audits, and adherence to contract terms.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns due to CPIF contract type.
Lack of detailed performance metrics in summary data.
No explicit mention of small business subcontracting.
Geographic focus on Nevada (SN: NEVADA) may limit broader applicability or scalability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $79.6 million to MANAGEMENT & TRAINING CORPORATION. OPERATE RESIDENTIAL VOCATIONAL AND ACADEMIC TRAINING FACILITY FOR YOUTH AGES 16 - 24.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $79.6 million.

What is the period of performance?

Start: 2007-02-01. End: 2011-01-31.

What are the specific performance metrics and expected outcomes for the youth participating in this training program?

The provided data does not detail specific performance metrics or expected outcomes for the youth. A thorough review would require access to the full contract, including performance work statements and evaluation criteria. Key metrics would likely include graduation rates, job placement rates, and participant skill acquisition.

How does the Cost Plus Incentive Fee structure incentivize cost efficiency and quality of service delivery in this youth training program?

The Cost Plus Incentive Fee (CPIF) structure allows the contractor to earn a fee based on actual costs plus an incentive amount if performance targets are met or exceeded. For this program, it could incentivize efficient resource management and high-quality training outcomes. However, careful monitoring is needed to prevent cost inflation and ensure the incentive targets align with the program's core mission.

What is the long-term impact of this program on the participants' future employment and societal contribution?

The long-term impact is contingent on the program's effectiveness in delivering relevant vocational skills, academic support, and life guidance. Successful outcomes could lead to increased employability, reduced recidivism, and greater self-sufficiency for participants. The $79.6M investment aims to yield positive returns through improved individual lives and reduced social service burdens.

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: DOLJ07SA00002

Offers Received: 1

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: $147,805,315

Exercised Options: $94,305,426

Current Obligation: $79,630,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline