DOL's $72.6M Contract for Residential Training Services Awarded to Management & Training Corporation
Contract Overview
Contract Amount: $72,623,654 ($72.6M)
Contractor: Management & Training Corporation
Awarding Agency: Department of Labor
Start Date: 2007-05-01
End Date: 2012-04-30
Contract Duration: 1,826 days
Daily Burn Rate: $39.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: PROVIDE ACADEMIC AND VOCATIONAL TRAINING IN A RESIDENTIAL SETTING TO 362 TRAINEES.
Place of Performance
Location: WAIMANALO, HONOLULU County, HAWAII, 96795
State: Hawaii Government Spending
Plain-Language Summary
Department of Labor obligated $72.6 million to MANAGEMENT & TRAINING CORPORATION for work described as: PROVIDE ACADEMIC AND VOCATIONAL TRAINING IN A RESIDENTIAL SETTING TO 362 TRAINEES. Key points: 1. The contract aims to provide academic and vocational training to 362 trainees in a residential setting. 2. Management & Training Corporation, the sole awardee, has a history of managing similar government programs. 3. The contract's duration of 1826 days (5 years) suggests a significant, long-term commitment. 4. The sector appears to be focused on workforce development and education, a critical area for public good.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar training programs is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the price discovery mechanism are not provided.
Taxpayer Impact: Taxpayer funds are being used to support workforce development, aiming for long-term economic benefits through improved employability of trainees.
Public Impact
Provides essential training and skill development opportunities for 362 individuals. Supports the Department of Labor's mission to enhance workforce preparedness. Potential for improved economic outcomes for trainees through enhanced job prospects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Cost Plus Incentive Fee structure.
- Lack of specific performance metrics and outcome-based incentives.
- Limited information on trainee success rates and long-term employment.
Positive Signals
- Addresses a clear need for vocational and academic training.
- Awarded through full and open competition.
- Long-term contract duration allows for sustained program impact.
Sector Analysis
This contract falls within the workforce development and education sector. Spending benchmarks for similar government-funded training programs can vary widely based on program scope, duration, and trainee population.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
Oversight would typically be managed by the Department of Labor's Employment and Training Administration. Accountability would likely be tied to meeting training completion rates and potentially post-training employment metrics.
Related Government Programs
- Other Technical and Trade Schools
- Department of Labor Contracting
- Employment and Training Administration Programs
Risk Flags
- Cost control risks associated with CPIF contract type.
- Potential for undefined or unmeasured trainee outcomes.
- Lack of specific performance benchmarks for contractor success.
- Limited transparency on small business participation.
Tags
other-technical-and-trade-schools, department-of-labor, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $72.6 million to MANAGEMENT & TRAINING CORPORATION. PROVIDE ACADEMIC AND VOCATIONAL TRAINING IN A RESIDENTIAL SETTING TO 362 TRAINEES.
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 $72.6 million.
What is the period of performance?
Start: 2007-05-01. End: 2012-04-30.
What are the specific performance metrics and expected outcomes for the trainees under this contract?
The provided data does not detail specific performance metrics or expected outcomes for trainees. Typically, such contracts would include targets for training completion, skill acquisition, and potentially post-training employment rates. Without these, assessing the program's effectiveness and value for money is challenging.
How does the cost-plus-incentive-fee structure ensure cost-effectiveness and prevent contractor overspending?
A Cost Plus Incentive Fee (CPIF) contract aims to incentivize the contractor to control costs by sharing savings or cost overruns with the government. However, the effectiveness depends heavily on the pre-defined target costs and incentive formulas. Without details on these, it's difficult to assess the risk of overspending.
What is the historical success rate of Management & Training Corporation in similar residential training programs?
Information on Management & Training Corporation's historical success rates in similar programs is not provided in the data. Assessing their track record in terms of trainee completion, skill attainment, and long-term employment outcomes would be crucial for evaluating the likely effectiveness of this contract.
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
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $117,823,480
Exercised Options: $76,594,608
Current Obligation: $72,623,654
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-05-01
Current End Date: 2012-04-30
Potential End Date: 2012-04-30 00:00:00
Last Modified: 2020-04-24
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