Department of Labor's $55.8M contract for Albuquerque JC Center operations awarded to DEL-JEN, Inc
Contract Overview
Contract Amount: $55,830,804 ($55.8M)
Contractor: Del-Jen, Inc.
Awarding Agency: Department of Labor
Start Date: 2006-10-01
End Date: 2011-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $30.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: OPERATION OF ALBUQUERQUE JC CENTER
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87104
Plain-Language Summary
Department of Labor obligated $55.8 million to DEL-JEN, INC. for work described as: OPERATION OF ALBUQUERQUE JC CENTER Key points: 1. Contract value of $55.8M over 5 years suggests a significant investment in operational support. 2. The award to DEL-JEN, Inc. represents a single-source provider for a critical function. 3. A 5-year duration indicates a long-term need for these services. 4. The contract type (Cost Plus Incentive Fee) suggests a focus on performance and cost control. 5. The absence of small business set-aside flags potential missed opportunities for smaller enterprises. 6. The PSC code is not specified, making direct comparison to similar technical services difficult.
Value Assessment
Rating: fair
The total contract value of $55.8 million over five years averages to approximately $11.16 million per year. Without specific performance metrics or comparable contracts for similar correctional facility operations, it is difficult to definitively benchmark the value for money. The Cost Plus Incentive Fee structure implies that the government aims to incentivize efficient performance and cost savings, which can be a positive indicator if managed effectively. However, the lack of detailed cost breakdowns or comparisons makes a precise assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 8 bids suggests a reasonably competitive process. However, the specific details of the competition, such as the number of proposals received and the evaluation criteria, are not provided. A competitive process is generally favorable for price discovery and ensuring the government receives the best value.
Taxpayer Impact: A full and open competition process, with 8 bidders, suggests that taxpayers likely benefited from competitive pricing and a wider pool of potential service providers.
Public Impact
The primary beneficiaries are likely the inmates and staff at the Albuquerque Job Corps Center, who will receive operational support services. The contract ensures the continued functioning and management of the Albuquerque Job Corps Center. The geographic impact is localized to Albuquerque, New Mexico, where the center is located. Workforce implications include employment opportunities for DEL-JEN, Inc. staff and potentially indirect economic benefits within the local Albuquerque economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it hard to assess if the incentive fee structure is driving optimal outcomes.
- The absence of small business participation could limit opportunities for smaller, specialized firms.
- Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not closely monitored.
- The broad nature of 'Other Technical and Trade Schools' (NAICS code) could mask specific service delivery risks.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The Cost Plus Incentive Fee structure incentivizes contractor performance and cost efficiency.
- A significant contract value suggests the contractor is capable of handling large-scale operations.
- The 5-year duration provides stability for service delivery at the center.
Sector Analysis
This contract falls within the broader 'Other Technical and Trade Schools' sector, specifically related to the operation of educational and vocational training facilities, often associated with government-run centers like Job Corps. The market for operating such facilities can be specialized, involving a mix of educational services, facility management, and security. Benchmarking against similar contracts is challenging without more specific service details, but the annual value of over $11 million indicates a substantial operation.
Small Business Impact
The contract was not set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated. This suggests that larger firms or joint ventures were the primary focus of the competition. While DEL-JEN, Inc. may engage small businesses as subcontractors, the lack of a set-aside or specific subcontracting goals means there's no guarantee of significant small business participation, potentially limiting opportunities within the small business ecosystem for this specific contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures are embedded within the Cost Plus Incentive Fee structure, which ties a portion of the contractor's profit to performance and cost targets. Transparency is generally facilitated through contract award databases, but detailed operational performance and financial reporting are often internal to the agency and contractor, unless specific IG reviews are initiated.
Related Government Programs
- Job Corps Program Administration
- Federal Correctional Facility Operations
- Vocational Training Services Contracts
- Department of Labor Facility Management
Risk Flags
- Potential for cost overruns in CPIF contracts if not managed closely.
- Lack of specific performance metrics makes value assessment difficult.
- Limited visibility into small business subcontracting opportunities.
- Broad NAICS code may obscure specific service risks.
Tags
operation-of-albuquerque-jc-center, del-jen-inc, department-of-labor, office-of-the-assistant-secretary-for-administration-and-management, definitive-contract, full-and-open-competition, cost-plus-incentive-fee, new-mexico, other-technical-and-trade-schools, long-term-contract, over-50m-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $55.8 million to DEL-JEN, INC.. OPERATION OF ALBUQUERQUE JC CENTER
Who is the contractor on this award?
The obligated recipient is DEL-JEN, INC..
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 $55.8 million.
What is the period of performance?
Start: 2006-10-01. End: 2011-09-30.
What is the track record of DEL-JEN, Inc. in managing similar government contracts, particularly those involving correctional or educational facility operations?
Information regarding DEL-JEN, Inc.'s specific track record in managing correctional or educational facility operations is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar federal contracts. Agencies typically maintain performance records, and a deeper dive into these would reveal their experience level and reliability in this specialized sector. Without this, it's difficult to gauge their expertise beyond the award of this specific contract.
How does the annual cost of this contract compare to the operational costs of similar Job Corps centers or other federal training facilities?
The annual cost for this contract averages approximately $11.16 million ($55.8M / 5 years). Benchmarking this against similar facilities is challenging without access to detailed operational cost data for other Job Corps centers or comparable federal training institutions. Factors such as facility size, inmate population, specific services offered, and regional cost variations can significantly influence operational expenses. A thorough comparison would necessitate a study of publicly available reports or internal agency data on similar contracts to determine if this represents a cost-effective rate.
What are the key performance indicators (KPIs) tied to the 'incentive fee' component of this Cost Plus Incentive Fee contract?
The provided data does not specify the key performance indicators (KPIs) linked to the incentive fee for this contract. In a Cost Plus Incentive Fee (CPIF) contract, these KPIs are crucial as they define the targets the contractor must meet or exceed to earn additional profit. Typical KPIs for facility operations might include student completion rates, job placement success, facility maintenance standards, safety incident rates, or budget adherence. The agency's oversight would focus on tracking these metrics to ensure DEL-JEN, Inc. is incentivized to achieve desired outcomes.
What is the historical spending trend for the operation of the Albuquerque JC Center prior to this contract award?
The provided data only details the current contract award of $55.8 million from October 1, 2006, to September 30, 2011. It does not offer historical spending data for the Albuquerque JC Center's operations before this period. To understand historical spending trends, one would need to access previous contract awards, budget allocations, or agency financial reports related to this specific center. Without this historical context, it's impossible to determine if spending has increased, decreased, or remained stable over time.
What specific services are included under the 'OPERATION OF ALBUQUERQUE JC CENTER' and how are they measured for performance?
The contract title 'OPERATION OF ALBUQUERQUE JC CENTER' suggests a broad scope encompassing the day-to-day management and functioning of the facility. This likely includes services such as facility maintenance, security, administration, student support services, and potentially the coordination of vocational training programs. Performance measurement would typically be detailed in the contract's Statement of Work (SOW) and Quality Assurance Surveillance Plan (QASP). These documents would outline specific deliverables, standards, and methods for evaluating the contractor's performance against contract requirements.
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: 8
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fluor Corporation (UEI: 006907190)
Address: 28441 HIGHRIDGE RD # 401, ROLLING HILLS ESTATES, CA, 90274
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $58,302,403
Exercised Options: $55,830,804
Current Obligation: $55,830,804
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-10-01
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2020-09-17
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