Department of Labor's $64M Job Corps construction training contract awarded to UBC National Job Corps Training Fund Inc

Contract Overview

Contract Amount: $64,241,004 ($64.2M)

Contractor: UBC National JOB Corps Training Fund Inc

Awarding Agency: Department of Labor

Start Date: 2008-02-01

End Date: 2013-06-07

Contract Duration: 1,953 days

Daily Burn Rate: $32.9K/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 A CONSTRUCTION TRADE.

Place of Performance

Location: THE LAKES, CLARK County, NEVADA, 88901

State: Nevada Government Spending

Plain-Language Summary

Department of Labor obligated $64.2 million to UBC NATIONAL JOB CORPS TRAINING FUND INC for work described as: NATIONAL TRAINING CONTRACT TO TRAIN JOB CORPS STUDENTS ACROSS THE NATION IN A CONSTRUCTION TRADE. Key points: 1. The contract's value of over $64 million over its 5-year duration indicates a significant investment in vocational training. 2. Awarded as a sole-source contract, the lack of competition may limit price discovery and potentially increase costs. 3. The 'Cost Plus Fixed Fee' contract type carries inherent risks of cost overruns, requiring robust oversight. 4. The contract's focus on construction trades aligns with industry needs and potential workforce development goals. 5. The duration of the contract (over 5 years) suggests a long-term commitment to the training program. 6. The absence of small business set-asides or subcontracting requirements means limited direct benefit to the small business ecosystem.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its sole-source nature and the specialized training provided. However, a total value of over $64 million for a 5-year national training program suggests a substantial per-student investment. The 'Cost Plus Fixed Fee' structure, while allowing for flexibility, can lead to higher overall costs compared to fixed-price contracts if not managed tightly. Without comparable competitive bids, it's difficult to definitively assess if the pricing represents optimal value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific entity possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition means that taxpayers did not benefit from the price reductions and innovation that can arise from a competitive bidding process. It also limits the government's ability to explore alternative training providers or methodologies.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces transparency in the procurement process.

Public Impact

Job Corps students across the nation benefit from specialized construction trade training. The program aims to equip individuals with skills for employment in the construction sector. The geographic impact is national, aiming to serve students regardless of their location. Workforce implications include the potential to increase the skilled labor pool in construction trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type increases risk of cost overruns.
Sole-source award limits competitive pressure, potentially leading to higher costs.
Lack of transparency in the procurement process due to sole-source award.
No explicit small business subcontracting requirements noted.

Positive Signals

Addresses a critical need for skilled labor in construction trades.
National scope ensures broad access to training opportunities.
Long-term contract duration provides stability for program delivery.

Sector Analysis

The construction industry is a significant sector of the U.S. economy, often facing labor shortages in skilled trades. Federal spending in this area, particularly through programs like Job Corps, aims to bridge this gap by developing a qualified workforce. This contract fits within the broader landscape of workforce development and vocational training initiatives funded by the government. Comparable spending benchmarks would typically involve other large-scale vocational training contracts or federal investments in workforce development programs.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor are there explicit requirements for subcontracting to small businesses mentioned in the provided data. This means that the primary contractor, UBC National Job Corps Training Fund Inc., will likely handle the majority of the work internally. Consequently, the direct economic impact on the small business ecosystem, in terms of subcontracting opportunities, is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Employment and Training Administration. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee is earned appropriately. Transparency is somewhat limited due to the sole-source nature of the award. The Inspector General's office within the Department of Labor would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Vocational Training Grants
Workforce Development Programs
Construction Industry Training

Risk Flags

Sole-source award may limit price competition.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Lack of small business subcontracting requirements limits economic impact on SMBs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $64.2 million to UBC NATIONAL JOB CORPS TRAINING FUND INC. NATIONAL TRAINING CONTRACT TO TRAIN JOB CORPS STUDENTS ACROSS THE NATION IN A CONSTRUCTION TRADE.

Who is the contractor on this award?

The obligated recipient is UBC NATIONAL JOB CORPS TRAINING FUND INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $64.2 million.

What is the period of performance?

Start: 2008-02-01. End: 2013-06-07.

What is the track record of UBC National Job Corps Training Fund Inc. in delivering similar training programs?

Information regarding the specific track record of UBC National Job Corps Training Fund Inc. in delivering similar large-scale national training programs is not detailed in the provided data. As this was a sole-source award, the justification for selecting this specific contractor would typically include an assessment of their past performance and capabilities. Further investigation into the Department of Labor's award justification documents or contractor performance databases would be necessary to ascertain their historical success rates, client satisfaction, and ability to meet program objectives for previous contracts of this nature. Without this information, it is difficult to assess their reliability and effectiveness.

How does the cost per student for this training compare to other national vocational training initiatives?

The provided data does not include the number of students trained or a detailed breakdown of costs per student, making a direct comparison difficult. The total contract value is over $64 million, and the duration is approximately 5 years. To calculate a cost per student, one would need to know the total number of students served over the contract period. Without this metric, it's impossible to benchmark against other vocational training programs. Factors such as the complexity of the construction trade being taught, the duration of the training, and the geographic scope of service delivery would all influence the cost per student. A comprehensive analysis would require access to program output data.

What are the primary risks associated with a Cost Plus Fixed Fee contract for vocational training?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like this one, is the potential for cost overruns. While the contractor receives a fixed fee, the government bears the risk of all allowable costs exceeding initial estimates. This can lead to the total contract value increasing beyond what might have been achieved with a fixed-price contract. For vocational training, risks could include unexpected increases in material costs for training, higher-than-anticipated instructor salaries, or unforeseen administrative expenses. Robust oversight and clear definitions of allowable costs are critical to mitigate these risks and ensure the government does not overpay.

What is the expected effectiveness of this training program in terms of job placement rates for graduates?

The provided data does not contain specific metrics on the expected or actual job placement rates for graduates of this training program. The contract's objective is to train Job Corps students in construction trades, implying an aim to improve their employability. The effectiveness would typically be measured by post-training employment outcomes, such as the percentage of graduates who secure jobs in the construction industry within a certain timeframe, their starting wages, and job retention rates. These metrics are usually tracked by the Department of Labor as part of program evaluation, but are not included in the summary data.

How has federal spending on Job Corps construction trade training evolved over time, and does this contract represent a significant shift?

The provided data focuses on a single contract awarded in 2008 and ending in 2013. It does not offer historical context on federal spending trends for Job Corps construction trade training. To assess evolution and shifts, one would need to examine aggregate spending data for the Job Corps program, specifically allocations for construction trades, over multiple fiscal years. This would involve looking at prior contracts, their values, and the number of participants served. Without this broader historical perspective, it's impossible to determine if this $64 million contract represents a significant increase, decrease, or continuation of previous spending levels.

What are the implications of awarding this contract solely to UBC National Job Corps Training Fund Inc. for market competition in vocational training services?

Awarding this significant national training contract on a sole-source basis to UBC National Job Corps Training Fund Inc. has implications for market competition. It means that other organizations capable of providing similar vocational training services were not given an opportunity to compete for this funding. This can stifle innovation and prevent the government from potentially securing better value through competitive bidding. For the broader market, it signals that for certain specialized training needs, the government may opt for sole-source awards, potentially discouraging smaller or newer entities from investing in capabilities if they perceive limited opportunities for federal contracts.

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: DOL079RP20443

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6801 PLACID ST, LAS VEGAS, NV, 89119

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $461,439,104

Exercised Options: $67,623,368

Current Obligation: $64,241,004

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline