Labor Department's $15M Operation of JC Center contract awarded to Career Systems Development Corporation

Contract Overview

Contract Amount: $15,058,826 ($15.1M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2008-01-01

End Date: 2010-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF JC CENTER

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118

State: Louisiana Government Spending

Plain-Language Summary

Department of Labor obligated $15.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATION OF JC CENTER Key points: 1. Contract value of $15.06 million over three years. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control. 4. The North American Industry Classification System (NAICS) code is 611519, 'Other Technical and Trade Schools'. 5. The contract was awarded by the Department of Labor's Employment and Training Administration. 6. The contractor, Career Systems Development Corporation, has a track record with this type of service. 7. The contract duration is 1095 days, spanning from January 1, 2008, to December 31, 2010. 8. The contract was performed in Louisiana (LA).

Value Assessment

Rating: fair

The contract's value of $15.06 million over three years averages to approximately $5.02 million annually. Without specific benchmarks for 'Operation of JC Center' services, a direct value-for-money assessment is challenging. However, the CPIF contract type suggests an attempt to align contractor incentives with cost efficiency. Further analysis would require comparing this contract's scope and pricing to similar government or private sector operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a moderate level of competition for this contract. A higher number of bidders generally leads to more competitive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures a wider pool of potential contractors are considered.

Public Impact

The primary beneficiaries are likely individuals seeking services related to the 'Operation of JC Center,' which is presumed to be an employment or training center. The services delivered are related to technical and trade education, as indicated by the NAICS code. The geographic impact is localized to Louisiana, where the contract was performed. The contract supports workforce development by potentially providing training and support services to participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcomes in the provided data makes it difficult to assess the effectiveness of the 'Operation of JC Center'.
The CPIF contract type, while incentivizing cost control, can sometimes lead to complex billing and oversight requirements.
Without detailed breakdowns of costs, it's hard to ascertain if the $15M represents optimal value for the services rendered.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, Career Systems Development Corporation, has experience in this domain, potentially leading to efficient service delivery.
The CPIF structure aims to reward cost savings, which can benefit the government if managed effectively.

Sector Analysis

The contract falls under the 'Other Technical and Trade Schools' sector (NAICS 611519), which is part of the broader education and training services industry. This sector provides specialized vocational training. Government spending in this area often supports workforce development initiatives, aiming to equip individuals with skills for specific trades or industries. Benchmarking would involve comparing the cost per participant or per training hour against similar government-funded or private vocational programs.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no information on subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific award is not evident from the data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. As a Cost Plus Incentive Fee (CPIF) contract, there would be specific mechanisms to monitor costs, performance, and the achievement of incentive targets. Transparency would depend on the agency's reporting practices and the public availability of contract performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Job Corps Centers
Vocational Rehabilitation Services
Adult Education and Literacy Programs

Risk Flags

Potential for cost overruns inherent in CPIF contracts.
Need for robust performance monitoring to ensure training effectiveness.
Dependence on contractor's ability to manage complex operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $15.1 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATION OF JC CENTER

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2008-01-01. End: 2010-12-31.

What specific services were encompassed by the 'Operation of JC Center' contract?

The provided data identifies the contract under NAICS code 611519, 'Other Technical and Trade Schools,' and the awarding agency as the Department of Labor's Employment and Training Administration. This suggests the contract likely involved the operation and management of a center focused on providing technical and vocational training, career counseling, job placement assistance, and related support services. The 'JC Center' likely refers to a Job Corps Center or a similar facility aimed at preparing young adults and other individuals for employment through education and skills training. The specific scope would detail curriculum, facility management, student support, and administrative functions.

How does the $15.06 million contract value compare to similar government contracts for operating training centers?

A direct comparison of the $15.06 million contract value requires access to a database of similar government contracts for operating training centers, specifically those managed by the Department of Labor or other agencies with similar workforce development mandates. Factors such as the size of the center, the number of participants served, the duration of the contract, and the specific services offered (e.g., types of training, support services) significantly influence cost. Without these comparative data points, it's difficult to definitively state whether $15.06 million over three years represents a high, low, or average cost. However, annualizing the cost to approximately $5.02 million suggests a substantial investment in operating such a facility.

What are the potential risks associated with a Cost Plus Incentive Fee (CPIF) contract for operating a training center?

Cost Plus Incentive Fee (CPIF) contracts, while designed to encourage cost efficiency, carry specific risks. For the government, risks include the potential for the contractor to inflate costs to increase the base for profit calculation, or to focus excessively on meeting incentive targets at the expense of other critical performance areas not tied to incentives. There's also a risk of disputes over cost allowability and the determination of incentive fee achievement. For the contractor, the risk lies in not achieving the performance targets required to earn the incentive fee, potentially reducing their overall profit. Effective oversight is crucial to mitigate these risks by rigorously auditing costs and verifying performance metrics.

What was the track record of Career Systems Development Corporation prior to this award?

The provided data indicates that Career Systems Development Corporation was awarded this contract. To assess their track record, one would need to examine their past performance on similar government contracts, particularly those involving the operation of training centers or workforce development programs. This would involve reviewing past performance evaluations, any documented issues or successes, and their history with the Department of Labor or other federal agencies. A positive track record would suggest a lower risk of performance issues, while a history of problems could indicate potential concerns for this contract.

How has federal spending on 'Other Technical and Trade Schools' (NAICS 611519) evolved over time?

Analyzing the historical spending trends for NAICS code 611519 requires accessing federal procurement data over multiple fiscal years. This would reveal whether spending in this sector has increased, decreased, or remained stable. Factors influencing these trends could include shifts in federal policy regarding workforce development, economic conditions, and the demand for specific vocational skills. Understanding these patterns provides context for the $15.06 million award, indicating whether it represents a typical level of investment or a significant deviation from historical spending.

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: S08F6LA002

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies

Address: 75 THRUWAY PARK DR #100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $15,063,934

Exercised Options: $15,058,826

Current Obligation: $15,058,826

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline