Department of Labor's $32.7M contract for Jacksonville Job Corps Center training services awarded to Applied Technology Systems, Inc

Contract Overview

Contract Amount: $32,728,395 ($32.7M)

Contractor: Applied Technology Systems, Inc.

Awarding Agency: Department of Labor

Start Date: 2007-02-01

End Date: 2011-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: JACKSONVILLE JOB CORPS CENTER

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32209

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $32.7 million to APPLIED TECHNOLOGY SYSTEMS, INC. for work described as: JACKSONVILLE JOB CORPS CENTER Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives, potentially driving efficiency. 2. With a duration of 1460 days, this represents a significant, long-term investment in workforce development. 3. The award was made under full and open competition, suggesting a robust market for these services. 4. The North American Industry Classification System (NAICS) code 611519 indicates a focus on specialized technical and trade education. 5. The contract's value of over $32 million underscores the scale of federal commitment to this training initiative. 6. The absence of small business set-aside flags indicates the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The cost-plus-incentive-fee (CPIF) pricing structure suggests an expectation of shared risk and reward, but the ultimate value depends heavily on the contractor's ability to meet performance targets efficiently. Compared to similar large-scale workforce development contracts, the per-diem cost or cost per student would be a more insightful metric for assessing 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 four bids suggests a competitive environment, which typically benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the most cost-effective solutions.

Public Impact

The primary beneficiaries are individuals seeking vocational training and employment opportunities through the Jacksonville Job Corps Center. The contract supports the delivery of technical and trade education services, equipping participants with job-ready skills. The geographic impact is focused on Jacksonville, Florida, and its surrounding communities, aiming to improve local workforce capabilities. This initiative has implications for the local workforce by providing training that can lead to employment in skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if performance incentives are not effectively managed within the CPIF structure.
Ensuring consistent quality of training across the contract duration requires ongoing oversight.
Dependence on a single contractor for a significant period may limit flexibility in adapting to evolving training needs.

Positive Signals

The use of full and open competition suggests a competitive market, potentially leading to better value.
The CPIF contract type incentivizes the contractor to perform efficiently and meet program goals.
The long-term nature of the contract provides stability for the training program and its participants.

Sector Analysis

This contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The market for such services is driven by federal and state workforce development initiatives. Comparable spending benchmarks would involve analyzing other Job Corps center contracts or similar large-scale government-funded training programs to assess cost-effectiveness and pricing structures.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating that small business participation was not a primary set-aside criterion for this specific award. However, the prime contractor, Applied Technology Systems, Inc., may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures are likely embedded within the cost-plus-incentive-fee structure, linking contractor payment to performance outcomes. Transparency would be facilitated through contract reporting requirements and potentially public access to performance data, though specific oversight mechanisms and Inspector General jurisdiction would need further confirmation.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Job Corps National Program
Federal Workforce Development Initiatives
Vocational Rehabilitation Services

Risk Flags

Potential for cost overruns due to CPIF structure.
Ensuring consistent training quality over contract duration.
Contractor performance variability.
Market shifts impacting training relevance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.7 million to APPLIED TECHNOLOGY SYSTEMS, INC.. JACKSONVILLE JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is APPLIED TECHNOLOGY SYSTEMS, 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 $32.7 million.

What is the period of performance?

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

What is the track record of Applied Technology Systems, Inc. in managing federal contracts, particularly in the education and training sector?

Applied Technology Systems, Inc. has a history of federal contracting, though specific details on their performance in the education and training sector, particularly for Job Corps centers, would require a deeper dive into contract databases and performance reviews. Analyzing past awards, contract modifications, and any reported issues or successes would provide a clearer picture of their capabilities and reliability in delivering similar services. Their experience with cost-plus-incentive-fee contracts is also a key factor in assessing their suitability for this role.

How does the cost structure of this contract compare to other Job Corps center contracts of similar size and scope?

Comparing the cost structure requires detailed financial data not fully available in the provided summary. The 'cost plus incentive fee' (CPIF) model means that the final cost is variable, dependent on performance. To benchmark effectively, one would need to compare the base cost, target profit, incentive fee structure, and the actual final cost against similar CPIF contracts for Job Corps centers. Factors like geographic location, local labor costs, and the specific training programs offered also influence cost comparisons, making a direct 'apples-to-apples' comparison complex without granular data.

What are the key performance indicators (KPIs) used to assess the success of the Jacksonville Job Corps Center under this contract?

Key performance indicators for a Job Corps center contract typically revolve around student outcomes, such as completion rates, job placement rates, starting wages of placed graduates, and employer satisfaction. The CPIF structure suggests that specific, measurable targets related to these or other metrics would be defined in the contract's Statement of Work. Performance against these KPIs would directly influence the incentive fee earned by Applied Technology Systems, Inc., making them critical for both contractor motivation and government oversight.

What is the historical spending trend for the Jacksonville Job Corps Center or similar training programs managed by the Department of Labor?

Historical spending for the Jacksonville Job Corps Center would reveal trends in federal investment in this specific location. Analyzing this contract's value ($32.7M over approx. 4 years) in the context of previous contracts for the same center or comparable centers nationwide would indicate whether spending has increased, decreased, or remained stable. Understanding these trends can highlight shifts in program priorities, funding levels, or the effectiveness of different contracting approaches over time.

What are the potential risks associated with a long-term, cost-plus-incentive-fee contract for vocational training services?

Long-term CPIF contracts carry risks such as potential for cost creep if performance targets are not well-defined or achievable, leading to higher-than-expected costs for the government. There's also a risk that the focus might shift towards meeting easily achievable metrics rather than maximizing the quality and impact of training. Ensuring robust oversight to monitor performance, manage scope changes, and verify cost reasonableness is crucial to mitigate these risks and ensure the program delivers maximum value.

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

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1300 E NINTH ST PENTON BUILDING, CLEVELAND, OH, 44114

Business Categories: Black American Owned Business, Category Business, Educational Institution, Higher Education, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,760,594

Exercised Options: $32,728,395

Current Obligation: $32,728,395

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline