Labor Department's $36.5M Job Corps Painting Contract Awarded Sole-Source to Painters Union

Contract Overview

Contract Amount: $36,532,324 ($36.5M)

Contractor: International Union of Painters and Allied Trades

Awarding Agency: Department of Labor

Start Date: 2008-02-01

End Date: 2013-05-31

Contract Duration: 1,946 days

Daily Burn Rate: $18.8K/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 TO TRAIN JC STUDENTS ACROSS THE NATION FOR PAINTING AND ALLIED TRADES.

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $36.5 million to INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES for work described as: JOB CORPS NATIONAL TRAINING CONTRACT TO TRAIN JC STUDENTS ACROSS THE NATION FOR PAINTING AND ALLIED TRADES. Key points: 1. Significant investment in vocational training for painting and allied trades. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of over 5 years suggests a long-term need for these services. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $36.5 million price tag represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to the International Union of Painters and Allied Trades. This limits price discovery and potentially reduces opportunities for other qualified organizations to provide services.

Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition may result in a higher cost than if the contract had been competitively bid.

Public Impact

Provides specialized training for a skilled trade, potentially boosting employment for Job Corps students. The sole-source nature of the award could limit the diversity of training approaches or providers. Long contract duration may indicate a sustained need for these specific vocational skills. No small business participation was reported, potentially missing opportunities to support smaller training organizations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Addresses a specific vocational need
Long-term training program

Sector Analysis

This contract falls under vocational rehabilitation services, specifically focusing on skilled trades training. Benchmarks for similar large-scale, long-term vocational training contracts are difficult to establish without competitive data.

Small Business Impact

The contract explicitly states no small business participation. This is a missed opportunity to engage smaller, specialized training providers and potentially achieve cost efficiencies through diverse sourcing.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for this contract. Oversight would focus on ensuring the quality of training, student outcomes, and adherence to the fixed fee structure.

Related Government Programs

Vocational Rehabilitation Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Potential for higher costs due to lack of competition.
Limited opportunities for small businesses.
Risk of contractor lock-in with sole-source awards.
Need for robust performance monitoring to ensure training quality and student outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $36.5 million to INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES. JOB CORPS NATIONAL TRAINING CONTRACT TO TRAIN JC STUDENTS ACROSS THE NATION FOR PAINTING AND ALLIED TRADES.

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $36.5 million.

What is the period of performance?

Start: 2008-02-01. End: 2013-05-31.

What was the justification for awarding this contract sole-source instead of through full and open competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or specific circumstances where only one source can fulfill the requirement. Without further documentation, it's unclear why the International Union of Painters and Allied Trades was the only viable option for this extensive national training program.

What are the key performance indicators (KPIs) for this contract, and how are student success rates measured?

Key performance indicators would likely include the number of students trained, completion rates, job placement rates post-training, and potentially employer satisfaction. Measuring student success is crucial for demonstrating the value and effectiveness of the training provided under this significant federal investment.

How does the fixed fee component of the Cost Plus Fixed Fee contract ensure cost control and value for taxpayers?

In a Cost Plus Fixed Fee contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can still fluctuate based on actual expenses. Effective oversight is critical to ensure costs remain reasonable and the fixed fee adequately compensates the contractor for the agreed-upon scope.

Industry Classification

NAICS: Health Care and Social Assistance › Vocational Rehabilitation Services › Vocational Rehabilitation Services

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: 7230 PARKWAY DR, HANOVER, MD, 03

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

Financial Breakdown

Contract Ceiling: $36,532,324

Exercised Options: $36,532,324

Current Obligation: $36,532,324

Contract Characteristics

Cost or Pricing Data: YES

Timeline