Department of Labor's $35.3M Job Corps training contract awarded to Transportation Communications Union/IAM without competition

Contract Overview

Contract Amount: $35,286,894 ($35.3M)

Contractor: Transportation Communications Union/Iam

Awarding Agency: Department of Labor

Start Date: 2008-01-01

End Date: 2013-05-31

Contract Duration: 1,977 days

Daily Burn Rate: $17.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: JOB CORPS NATIONAL TRAINING CONTRACT FOR TRANSPORTATION AND COMMUNICATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $35.3 million to TRANSPORTATION COMMUNICATIONS UNION/IAM for work described as: JOB CORPS NATIONAL TRAINING CONTRACT FOR TRANSPORTATION AND COMMUNICATION Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can incentivize cost overruns. 2. Lack of competition raises concerns about potential overpayment and suboptimal service delivery. 3. The contract duration of nearly 2000 days (over 5 years) suggests a long-term need for these services. 4. The specific NAICS code (611513) indicates a focus on apprenticeship and technical training. 5. Awarded to a single entity, Transportation Communications Union/IAM, suggesting a potential sole-source or limited competition scenario. 6. The contract was not competed, indicating a departure from standard procurement practices.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes a definitive value assessment difficult without further data. Benchmarking against similar apprenticeship and training programs is crucial. The absence of competitive bids means there's no market-driven price discovery to ensure optimal value for taxpayers. The total award amount of $35.3 million over its lifespan needs to be scrutinized against the outcomes and the number of individuals trained.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was explicitly marked as 'NOT COMPETED,' indicating it was awarded without a competitive bidding process. This suggests either a sole-source award or a limited competition where only one proposal was solicited or considered. The lack of multiple bidders means the Department of Labor did not benefit from the price and quality competition that typically drives better outcomes and lower costs.

Taxpayer Impact: The absence of competition means taxpayers may not have received the best possible price for these essential training services. Without bids from other qualified organizations, the government lacks assurance that the negotiated price reflects true market value.

Public Impact

Benefits individuals seeking vocational training and career development in transportation and communication fields. Delivers essential apprenticeship and technical training services to prepare the workforce. Primarily impacts individuals in the District of Columbia, where the contract is administered. Supports the workforce development goals of the Department of Labor by equipping individuals with in-demand skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee contract type can incentivize increased spending.
Absence of performance metrics or outcome data makes it difficult to assess effectiveness.
Long contract duration without competition raises questions about ongoing need and market alternatives.

Positive Signals

Addresses critical training needs in the transportation and communication sectors.
Awarded to an established entity (Transportation Communications Union/IAM) with potential expertise in the field.
Supports workforce development initiatives, a key government objective.

Sector Analysis

The contract falls within the broader education and training services sector, specifically focusing on vocational and apprenticeship programs. The NAICS code 611513 covers technical and trade schools. Spending in this area is crucial for addressing skills gaps and preparing the workforce for specific industries. Comparable spending benchmarks would involve analyzing other government contracts for similar apprenticeship and vocational training programs, particularly those managed by the Department of Labor or other workforce development agencies.

Small Business Impact

There is no indication that this contract included small business set-asides. The award to a single, likely larger, organization suggests that subcontracting opportunities for small businesses may be limited unless explicitly mandated. Further analysis would be needed to determine if the prime contractor has a subcontracting plan that benefits small businesses.

Oversight & Accountability

Oversight mechanisms for this contract would typically reside within the Department of Labor's Office of the Assistant Secretary for Administration and Management. As a cost-plus-fixed-fee contract, regular financial audits and performance reviews would be expected to ensure funds are used appropriately and services are delivered. Transparency regarding the specific performance metrics and outcomes achieved under this contract would be key to assessing accountability.

Related Government Programs

Job Corps Program
Department of Labor Workforce Development Programs
Apprenticeship Training Contracts
Vocational Education Services

Risk Flags

Lack of Competition
Cost-Plus-Fixed-Fee Contract Type
Potential for Overpricing
Limited Transparency on Outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $35.3 million to TRANSPORTATION COMMUNICATIONS UNION/IAM. JOB CORPS NATIONAL TRAINING CONTRACT FOR TRANSPORTATION AND COMMUNICATION

Who is the contractor on this award?

The obligated recipient is TRANSPORTATION COMMUNICATIONS UNION/IAM.

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 $35.3 million.

What is the period of performance?

Start: 2008-01-01. End: 2013-05-31.

What specific training outcomes were achieved under this contract, and how do they compare to the program's goals?

Detailed outcome data for this specific contract is not publicly available in the provided data. To assess the contract's effectiveness, one would need to examine performance reports from the Department of Labor. Key metrics would likely include the number of individuals trained, completion rates, job placement rates post-training, and average starting salaries of placed graduates. Comparing these outcomes against the initial goals set for the Transportation Communications Union/IAM and against national averages for similar Job Corps training programs would provide a clear picture of the contract's value and impact.

How does the cost-plus-fixed-fee structure impact the overall cost and efficiency of this training program?

The Cost-Plus-Fixed-Fee (CPFF) contract type means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While CPFF can be useful when the scope of work is not precisely defined, it carries inherent risks. It can incentivize contractors to incur higher costs, as their fee is fixed regardless of the total cost. For taxpayers, this means the final price could be significantly higher than initially estimated if costs escalate. Effective oversight, including rigorous cost auditing and clear performance standards, is crucial to mitigate these risks and ensure the government receives good value. Without such oversight, CPFF contracts can be less efficient than fixed-price alternatives.

What were the justifications for awarding this contract without competition?

The provided data states the contract was 'NOT COMPETED,' but does not offer the specific justification. Typically, sole-source or non-competitive awards are justified under specific circumstances outlined in federal acquisition regulations, such as the existence of only one responsible source, an urgent need, or a national emergency. For a training contract of this nature, justifications might include unique capabilities of the Transportation Communications Union/IAM, a critical need for continuity of services, or a specific mandate. However, the lack of competition inherently raises concerns about whether alternative, potentially more cost-effective, providers were overlooked.

What is the historical spending pattern for Job Corps training in transportation and communication, and how does this contract compare?

The provided data only details this single contract ($35.3M from 2008-2013). To establish a historical spending pattern, one would need to analyze prior and subsequent contracts for similar Job Corps training services, particularly those managed by the Department of Labor. This would involve searching federal procurement databases for contracts awarded to the Transportation Communications Union/IAM or other entities for transportation and communication training under the Job Corps program. Comparing the value, duration, and competition level of this contract against others would reveal trends in spending, identify potential increases or decreases in contract values, and highlight shifts in procurement strategies (e.g., from sole-source to competitive awards).

What is the track record of the Transportation Communications Union/IAM in delivering federal training contracts?

The provided data identifies the contractor as 'TRANSPORTATION COMMUNICATIONS UNION/IAM' for this specific Department of Labor contract. To assess their track record, a broader search of federal procurement databases (like FPDS or USASpending) would be necessary. This would reveal other federal contracts awarded to this entity, their values, durations, agencies involved, and performance ratings, if available. Examining past performance on similar training or apprenticeship programs, especially those funded by the Department of Labor or other government agencies, would provide insight into their capacity, reliability, and effectiveness as a federal contractor.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Apprenticeship Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3 RESEARCH PL, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $233,269,735

Exercised Options: $218,729,504

Current Obligation: $35,286,894

Timeline