Department of Labor's $22.2M Job Corps Automotive Training Contract Awarded to UAW-LETC

Contract Overview

Contract Amount: $22,193,791 ($22.2M)

Contractor: UAW- Labor Employment and Training Corporation

Awarding Agency: Department of Labor

Start Date: 2008-01-01

End Date: 2013-05-31

Contract Duration: 1,977 days

Daily Burn Rate: $11.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NATIONAL TRAINING CONTRACT TO TRAIN JOB CORPS STUDENTS ACROSS THE NATION IN THE AUTOMOTIVE FIELD.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $22.2 million to UAW- LABOR EMPLOYMENT AND TRAINING CORPORATION for work described as: NATIONAL TRAINING CONTRACT TO TRAIN JOB CORPS STUDENTS ACROSS THE NATION IN THE AUTOMOTIVE FIELD. Key points: 1. Contract focused on vocational training for automotive fields, aligning with workforce development goals. 2. Awarded to a single entity, UAW-Labor Employment and Training Corporation, raising questions about competition. 3. Long duration (5+ years) suggests a significant, ongoing need for these specialized training services. 4. The contract type (Cost Plus Fixed Fee) can incentivize cost increases if not closely monitored. 5. Geographic scope is national, indicating a broad impact on Job Corps students nationwide. 6. The absence of small business set-aside suggests larger prime contractors or direct federal performance.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee structure, while allowing for flexibility, can lead to higher costs compared to fixed-price contracts if not managed diligently. Comparing it to similar national vocational training programs would require access to more granular data on student outcomes and per-student training costs. The total award amount of $22.2 million over five years suggests a substantial investment in workforce development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The rationale for this approach is not provided in the data, but it typically suggests a unique capability, urgent need, or a specific partnership. Without a competitive bidding process, it is difficult to ascertain if the government received the best possible pricing or if alternative solutions were considered. The lack of competition limits the government's ability to leverage market forces to drive down costs and ensure optimal value.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government did not benefit from the price discovery that typically occurs in a competitive bidding environment.

Public Impact

Job Corps students nationwide benefit from specialized automotive training, enhancing their employability. The contract supports the development of a skilled workforce in the automotive sector. Geographic impact is national, reaching students across various Job Corps centers. Workforce implications include providing training that can lead to direct employment opportunities for graduates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Cost-plus contract type carries inherent risk of cost overruns without strict oversight.
Lack of competition may mean less incentive for contractor to innovate or improve efficiency.
Contract duration of over 5 years requires sustained monitoring to ensure continued value.

Positive Signals

Addresses a critical need for skilled automotive technicians through the Job Corps program.
National scope ensures widespread access to training opportunities.
Partnership with UAW-LETC likely leverages established expertise in labor and training.

Sector Analysis

This contract falls within the broader vocational training and workforce development sector. The automotive industry is a significant part of the economy, requiring a steady supply of skilled technicians. Federal spending in this area aims to bridge the gap between educational outcomes and industry demands. Comparable spending benchmarks would typically involve analyzing the cost per student trained across various federal and state-funded vocational programs, as well as private sector training initiatives.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the prime contractor's nature. The focus is on a large-scale national training program likely managed directly by the UAW-LETC. This means the direct economic impact on the small business ecosystem related to this specific contract is likely minimal, as the primary awardee is a large organization.

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. Given the sole-source nature and the Cost Plus Fixed Fee structure, rigorous oversight of expenditures, performance metrics, and student outcomes would be crucial. Transparency would depend on the Department's reporting practices regarding sole-source awards and the public availability of performance data. Inspector General jurisdiction would apply to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Training Grants
Vocational Education Funding

Risk Flags

Sole-source award
Cost-plus contract type
Lack of detailed performance metrics in summary data
Long contract duration requires sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $22.2 million to UAW- LABOR EMPLOYMENT AND TRAINING CORPORATION. NATIONAL TRAINING CONTRACT TO TRAIN JOB CORPS STUDENTS ACROSS THE NATION IN THE AUTOMOTIVE FIELD.

Who is the contractor on this award?

The obligated recipient is UAW- LABOR EMPLOYMENT AND TRAINING CORPORATION.

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 $22.2 million.

What is the period of performance?

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

What specific automotive trades or skills are covered under this training contract?

The provided data indicates the contract is for training Job Corps students in the 'automotive field.' However, it does not specify the exact trades or skills covered. Typically, automotive training under such programs can encompass areas like automotive maintenance and repair, auto body repair, diesel technology, and potentially specialized areas like electric vehicle maintenance, depending on the curriculum developed by UAW-LETC and approved by the Department of Labor. A detailed curriculum would be outlined in the contract's statement of work.

How does the cost per student trained under this contract compare to similar federal or state vocational programs?

Direct comparison of the cost per student is not feasible with the provided data. The contract's total value is $22.2 million over approximately five years. To calculate a per-student cost, one would need the total number of students trained annually or over the contract's life, and the specific breakdown of costs (direct labor, materials, overhead, fixed fee). Without this granular information, benchmarking against other programs is speculative. However, sole-source Cost Plus Fixed Fee contracts can sometimes be less cost-efficient than competitively bid fixed-price contracts.

What performance metrics are used to evaluate the success of this training contract?

The provided data does not detail the specific performance metrics. However, for a Job Corps training contract, key performance indicators (KPIs) typically include student enrollment rates, completion rates, job placement rates in relevant fields, starting wages of placed graduates, and employer satisfaction. The Department of Labor would establish these metrics in the contract's statement of work, and UAW-LETC would be required to report on them regularly to demonstrate the effectiveness and value of the training provided.

What is the track record of UAW-Labor Employment and Training Corporation in delivering similar large-scale training programs?

UAW-Labor Employment and Training Corporation (UAW-LETC) is an established entity with a history of managing workforce development and training programs, often in partnership with labor unions and government agencies. While specific details on past performance for contracts of this exact scale and focus are not in the provided data, UAW-LETC's affiliation with the United Auto Workers suggests deep ties and expertise within the automotive and manufacturing sectors. Their experience likely includes managing federal grants and contracts, curriculum development, and student placement services.

What are the potential risks associated with a sole-source, Cost Plus Fixed Fee contract for national training?

The primary risks associated with this contract structure are related to cost control and contractor performance. A sole-source award means the government did not benefit from competitive bidding, potentially leading to a higher price than might have been achieved otherwise. The Cost Plus Fixed Fee (CPFF) structure, while providing flexibility, can incentivize the contractor to incur more costs to increase the fixed fee earned, especially if the fee is a percentage of costs. Without robust oversight, there's a risk of cost overruns and potentially less focus on efficiency. Ensuring accountability requires diligent monitoring of expenditures and outcomes.

How does this contract align with the Department of Labor's broader mission for workforce development?

This contract directly aligns with the Department of Labor's mission to foster and promote the welfare of wage earners, job seekers, and retirees by improving working conditions, advancing opportunities, and protecting rights and benefits. By funding vocational training in the automotive field through the Job Corps program, the Department aims to equip young people, particularly those facing barriers to employment, with the skills needed for in-demand careers. This contributes to a stronger workforce, economic growth, and reduced unemployment.

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

Solicitation ID: DOL079RP20448

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 790 E WILLOW ST STE 150, LONG BEACH, CA, 90806

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,365,902

Exercised Options: $22,193,791

Current Obligation: $22,193,791

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline