Department of Labor's $37.4M contract for painter/plasterer apprenticeship training awarded to National Plastering Industry's Joint Apprenticeship Trust Fund

Contract Overview

Contract Amount: $37,447,747 ($37.4M)

Contractor: National Plastering Industrys Joint Apprenticeship Trust Fund

Awarding Agency: Department of Labor

Start Date: 2008-01-01

End Date: 2013-05-31

Contract Duration: 1,977 days

Daily Burn Rate: $18.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TRAIN JOB CORPS STUDENTS TO ENABLE THEM TO QUALIFY TO BECOME APPRENTICE PAINTERS/PLASTERERS.

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20785

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $37.4 million to NATIONAL PLASTERING INDUSTRYS JOINT APPRENTICESHIP TRUST FUND for work described as: TRAIN JOB CORPS STUDENTS TO ENABLE THEM TO QUALIFY TO BECOME APPRENTICE PAINTERS/PLASTERERS. Key points: 1. The contract's value of $37.4 million over five years suggests a significant investment in skilled trades development. 2. Awarded on a sole-source basis, the lack of competition may have limited opportunities for price discovery and potentially higher costs. 3. The contract's duration of nearly 2,000 days indicates a long-term commitment to workforce development in specific trades. 4. The cost-plus-fixed-fee pricing structure means the government covers all allowable costs plus a negotiated fee, which can lead to cost overruns if not closely managed. 5. The absence of small business set-aside flags raises questions about opportunities for smaller entities in this training initiative. 6. The contract's focus on apprenticeship training aligns with federal goals to address skilled labor shortages.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source apprenticeship training contracts. The cost-plus-fixed-fee (CPFF) structure inherently carries risk for the government, as costs are reimbursed. While the fixed fee provides some cost certainty for the contractor's profit, the overall project cost can escalate if not meticulously monitored. The total award amount of $37.4 million over approximately five years averages to about $7.5 million annually, which needs to be assessed against the number of individuals trained and their subsequent employment rates to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Labor did not conduct a competitive bidding process. This approach is typically used when only one responsible source is available or in cases of urgent need. The lack of competition means that potential alternative providers or more cost-effective solutions may not have been considered, potentially impacting the final price and the breadth of training methodologies available.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding. It also limits transparency in the procurement process.

Public Impact

Benefits apprentices by providing pathways to skilled trades in painting and plastering. Aims to qualify individuals for apprenticeship programs, potentially leading to stable employment and higher earning potential. The geographic impact is primarily focused on Maryland, where the contract is administered. Workforce implications include the development of a skilled labor pool for the construction and maintenance industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings for taxpayers.
Cost-plus-fixed-fee contract type can incentivize higher spending if not rigorously managed.
Lack of transparency in the procurement process due to sole-source nature.
No clear indication of performance metrics or success benchmarks within the provided data.

Positive Signals

Addresses a critical need for skilled trades in the painting and plastering industries.
Directly supports workforce development and job creation initiatives.
Long-term contract duration suggests a sustained commitment to training outcomes.

Sector Analysis

The construction and maintenance sector, particularly trades like painting and plastering, often faces skilled labor shortages. Apprenticeship programs are a key mechanism for addressing these gaps. This contract fits within the broader federal strategy to invest in workforce development and vocational training. Comparable spending benchmarks are difficult to establish for sole-source apprenticeship contracts, but the scale of this award indicates a significant program.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of subcontracting plans. This suggests that opportunities for small businesses to participate in delivering this training service may be limited, potentially excluding them from a significant federal investment. Further investigation would be needed to determine if any small business participation was mandated or occurred organically.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Employment and Training Administration. As a cost-plus-fixed-fee contract, rigorous financial oversight and auditing are crucial to ensure that costs are allowable, reasonable, and allocable. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the Department's Inspector General, although specific IG jurisdiction details are not provided.

Related Government Programs

Job Corps Program
ApprenticeshipUSA Initiative
Department of Labor Workforce Development Programs
Skilled Trades Training Grants

Risk Flags

Sole-source award may limit cost-effectiveness.
Cost-plus-fixed-fee structure requires diligent oversight to control costs.
Lack of competition may reduce transparency and innovation.
No explicit mention of performance metrics or evaluation criteria.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $37.4 million to NATIONAL PLASTERING INDUSTRYS JOINT APPRENTICESHIP TRUST FUND. TRAIN JOB CORPS STUDENTS TO ENABLE THEM TO QUALIFY TO BECOME APPRENTICE PAINTERS/PLASTERERS.

Who is the contractor on this award?

The obligated recipient is NATIONAL PLASTERING INDUSTRYS JOINT APPRENTICESHIP TRUST FUND.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37.4 million.

What is the period of performance?

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

What is the track record of the National Plastering Industry's Joint Apprenticeship Trust Fund in delivering similar training programs?

The National Plastering Industry's Joint Apprenticeship Trust Fund (NPIJATF) is a recognized entity for apprenticeship training within the plastering industry. Its track record would ideally be assessed by reviewing its history of successfully training apprentices, the graduation rates from its programs, and the subsequent employment and retention rates of its graduates in the trade. Information on the NPIJATF's specific experience with federal contracts, particularly large-scale ones like this, would be crucial. A review of past performance evaluations, if available, would provide insights into their effectiveness, reliability, and ability to meet contractual obligations. Without specific performance data from previous engagements, it is difficult to definitively assess their capabilities beyond their industry standing.

How does the average annual cost of this contract compare to other federal apprenticeship programs?

The average annual cost of this contract is approximately $7.49 million ($37.4 million / 5 years). Comparing this to other federal apprenticeship programs requires access to data on similar initiatives, which is not readily available in the public domain. Factors influencing cost include the number of apprentices trained, the duration and intensity of the training, the specific trades involved, and the geographic scope. Sole-source awards, like this one, can also inflate costs compared to competitively bid programs. To make a meaningful comparison, one would need to analyze programs with similar objectives, participant numbers, and training methodologies, while accounting for the different contracting mechanisms used.

What are the specific performance metrics and expected outcomes for this apprenticeship program?

The provided data does not specify the performance metrics or expected outcomes for this contract. Typically, such contracts would include measurable goals related to the number of individuals trained, the percentage who successfully complete the apprenticeship, their certification rates, and their subsequent employment in the target trades. The effectiveness of the program would be evaluated against these benchmarks. Without this information, it is challenging to assess the program's success and the value for money delivered to the taxpayer. The Department of Labor would be responsible for establishing and monitoring these metrics.

What is the risk associated with the cost-plus-fixed-fee (CPFF) contract type in this context?

The Cost-Plus-Fixed-Fee (CPFF) contract type carries inherent risks for the government. While the fixed fee provides a predictable profit margin for the contractor, the government bears the risk of all allowable costs. If the contractor's costs escalate beyond initial estimates due to inefficiencies, unforeseen circumstances, or inadequate cost controls, the total contract value can increase significantly. For an apprenticeship program, this means the government might end up paying more than anticipated to train each individual. Robust oversight, detailed cost accounting, and clear definitions of allowable costs are essential to mitigate these risks and ensure the government receives good value.

What is the historical spending pattern for apprenticeship training by the Department of Labor?

Historical spending patterns for apprenticeship training by the Department of Labor (DOL) would reveal the scale and consistency of federal investment in this area. Analyzing past awards, including their values, durations, and the types of entities contracted with (e.g., industry trusts, educational institutions, non-profits), can indicate trends. For instance, has DOL consistently funded apprenticeship programs, or are these investments cyclical? Understanding the historical allocation of funds can provide context for the significance of this $37.4 million contract and whether it represents an increase or decrease in federal commitment to skilled trades development. Without specific historical data, it's difficult to place this contract within a broader spending context.

Were there any attempts to solicit proposals from other qualified apprenticeship providers before awarding this sole-source contract?

The data explicitly states this contract was 'NOT COMPETED' and is a 'SOLE SOURCE'. This indicates that, based on the information available, no formal solicitation of proposals from multiple qualified providers occurred. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one source is capable of meeting the requirement or in cases of urgent and compelling need. However, the justification for not competing this contract would need to be documented by the agency. Without that documentation, it's presumed that the agency determined that the National Plastering Industry's Joint Apprenticeship Trust Fund was the only viable option or that competition was not feasible or practical.

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

Solicitation ID: DOL079RP20437

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8400 CORPORATE DR STE 235, LANDOVER, MD, 20785

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

Financial Breakdown

Contract Ceiling: $107,881,159

Exercised Options: $99,427,836

Current Obligation: $37,447,747

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline