Labor Department's $47M contract for school operations awarded to Adams and Associates Inc

Contract Overview

Contract Amount: $47,031,930 ($47.0M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2008-10-01

End Date: 2014-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF LITTLE ROCK JCC

Place of Performance

Location: LITTLE ROCK, PULASKI County, ARKANSAS, 72209

State: Arkansas Government Spending

Plain-Language Summary

Department of Labor obligated $47.0 million to ADAMS AND ASSOCIATES INC for work described as: OPERATION OF LITTLE ROCK JCC Key points: 1. The contract's value of $47 million over its duration suggests a significant investment in educational services. 2. Awarded through full and open competition, the contract indicates a market with multiple potential providers. 3. The use of a Cost Plus Incentive Fee (CPIF) pricing structure suggests a focus on performance and cost control. 4. The contract's duration of nearly six years implies a long-term need for the services provided. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The contract was awarded to a single entity, Adams and Associates Inc., suggesting they were the most competitive bidder.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services rendered and the number of students or programs supported. The Cost Plus Incentive Fee structure aims to balance cost efficiency with performance, but its effectiveness depends heavily on the defined incentives and oversight. Comparing it to similar contracts for operating educational facilities or providing specialized training would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 5 bidders suggests a reasonably competitive environment for these specialized educational services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging providers to offer the best value.

Public Impact

The primary beneficiaries are likely students or individuals seeking specialized technical and trade education. The services delivered pertain to the operation of the Little Rock Job Corps Center, providing vocational training and support. The geographic impact is centered in Arkansas (AR), specifically Little Rock, as indicated by the state and station codes. The contract has implications for the workforce by providing training that could lead to skilled employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the CPIF contract type if incentives are not well-structured.
Dependence on a single contractor for an extended period could lead to complacency or reduced innovation.
The specific outcomes and effectiveness of the training provided are not detailed, posing a risk to program success.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The CPIF structure incentivizes performance, potentially leading to better service delivery.
The long duration indicates a stable and ongoing need for these services, suggesting a well-established program.

Sector Analysis

This contract falls within the broader education and training sector, specifically focusing on vocational and technical education. The Job Corps program, which this contract supports, is a significant federal initiative aimed at providing disadvantaged youth with the skills and education needed to secure employment. The market for such services involves educational institutions, private training providers, and non-profit organizations. Comparable spending benchmarks would involve analyzing other Job Corps center operations contracts or similar large-scale vocational training programs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. There is no explicit information on subcontracting plans for small businesses within this data, but the scale of the contract might typically involve some subcontracting opportunities, depending on the operational needs.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). The CPIF contract type implies performance metrics and financial reporting requirements that are subject to review. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Department of Labor Job Corps Program
Federal Vocational Training Programs
Government Contracts for Educational Services

Risk Flags

Potential for cost overruns due to CPIF structure
Need for robust performance monitoring to ensure value for money
Contract duration may limit flexibility for future program adjustments

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $47.0 million to ADAMS AND ASSOCIATES INC. OPERATION OF LITTLE ROCK JCC

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES INC.

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 $47.0 million.

What is the period of performance?

Start: 2008-10-01. End: 2014-03-31.

What specific services does the 'OPERATION OF LITTLE ROCK JCC' entail, and what are the key performance indicators (KPIs) used to assess Adams and Associates Inc.'s performance under this contract?

The 'OPERATION OF LITTLE ROCK JCC' contract is for the operation of the Little Rock Job Corps Center. Job Corps centers provide vocational training, education, career counseling, and job placement services to disadvantaged youth. Key performance indicators typically include student enrollment rates, completion rates, graduation rates, job placement success, starting wages of placed graduates, and student satisfaction. The Cost Plus Incentive Fee (CPIF) structure suggests that specific performance targets related to these metrics would have been established, with financial incentives tied to achieving or exceeding them. Detailed KPIs and performance data are usually found in contract performance reports and award fee evaluations, which are not publicly available in this dataset.

How does the pricing structure (Cost Plus Incentive Fee) compare to other federal contracts for operating Job Corps centers or similar educational facilities?

Cost Plus Incentive Fee (CPIF) contracts are common in federal contracting when the government wants to incentivize contractor performance while sharing some of the cost risk. For operating Job Corps centers, CPIF is often used because it allows for flexibility in managing program costs while rewarding the contractor for achieving specific educational and employment outcomes. Other contracts might use Fixed Price (FP) structures if the scope is very well-defined and stable, or Cost Plus Fixed Fee (CPFF) if the primary goal is cost reimbursement with a fixed profit. The CPIF structure here suggests a desire to balance cost control with achieving high levels of student success and program efficiency, which aligns with the goals of the Job Corps program.

What is the historical spending pattern for the operation of the Little Rock Job Corps Center, and how does this $47 million contract fit within that trend?

The provided data covers a contract awarded in 2008 and ending in 2014, totaling $47,031,930. This represents an average annual spending of approximately $7.8 million ($47M / 5.7 years). To understand the historical pattern, one would need to examine spending for this center prior to 2008 and after 2014. If subsequent contracts for the same center are of similar magnitude, it suggests a consistent level of federal investment in its operation. Significant deviations in contract value over time could indicate changes in program scope, student capacity, or economic conditions affecting operational costs.

What is the track record of Adams and Associates Inc. in managing federal contracts, particularly those related to education and workforce development?

Adams and Associates Inc. was awarded this $47 million contract for operating the Little Rock Job Corps Center. To assess their track record, one would need to review other federal contracts awarded to this company, their performance history on those contracts (e.g., past performance evaluations, any disputes or terminations), and their experience in similar service areas. Information on contract awards and performance can often be found in federal procurement databases like SAM.gov or through agency-specific contract award portals. A review of their history would reveal their capacity to manage large, complex service contracts and their effectiveness in meeting government objectives.

Given the 'full and open competition' and 5 bidders, what does this suggest about the market for operating Job Corps centers in the region?

The fact that the contract for operating the Little Rock Job Corps Center received bids from 5 different entities under a full and open competition suggests a moderately competitive market for these services in the region. This indicates that there are multiple qualified organizations capable of managing such a facility and delivering the required educational and training programs. A healthy number of bidders generally leads to better price discovery and allows the government to select the offer that provides the best overall value, considering both cost and technical approach. If there were significantly more bidders, it might suggest an even more competitive market; fewer bidders could indicate a more specialized or consolidated market.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: S08F6AR006

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $48,982,618

Exercised Options: $47,031,930

Current Obligation: $47,031,930

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline