Department of Labor awards $45.2M contract for Operation of Tulsa JCC to Res-Care, Inc

Contract Overview

Contract Amount: $45,245,525 ($45.2M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2008-09-01

End Date: 2014-02-28

Contract Duration: 2,006 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE TULSA JCC

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74110

State: Oklahoma Government Spending

Plain-Language Summary

Department of Labor obligated $45.2 million to RES-CARE, INC for work described as: OPERATION OF THE TULSA JCC Key points: 1. Contract awarded to Res-Care, Inc. for operation of the Tulsa JCC. 2. The contract spans from 2008 to 2014, with a total value of $45.2 million. 3. Full and open competition was utilized for this award. 4. The contract type is Cost Plus Incentive Fee, indicating potential for performance-based adjustments. 5. The NAICS code 611519 suggests services related to technical and trade schools.

Value Assessment

Rating: fair

The contract value of $45.2 million over approximately 5.5 years suggests an average annual spend of around $8.2 million. Without specific benchmarks for JCC operations or similar technical/trade school services, a precise pricing assessment is difficult. However, the Cost Plus Incentive Fee structure implies a focus on managing costs while achieving performance targets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of potential contractors to bid. This method aims to ensure the government receives the best value by considering all qualified sources.

Taxpayer Impact: Full and open competition is intended to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Operates a Job Corps Center (JCC) in Tulsa, Oklahoma. Provides services that may include vocational training and support for students. Impacts individuals seeking skills development and employment opportunities. The contract duration of over 5 years suggests a significant, ongoing program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can lead to higher costs if not carefully managed.
Lack of specific performance metrics makes it difficult to assess value for money.
The long duration could indicate a lack of flexibility to adapt to changing needs.

Positive Signals

Awarded under full and open competition, suggesting a robust procurement process.
The contract aims to provide essential training and support services.
The use of an incentive fee structure can align contractor performance with government objectives.

Sector Analysis

This contract falls under the 'Other Technical and Trade Schools' sector (NAICS 611519). Spending in this sector often relates to workforce development and vocational training programs. Benchmarks for JCC operations are specific to the program's scope and location.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the primary contractor is likely a larger entity, and opportunities for small businesses may have been limited or subcontracted separately.

Oversight & Accountability

The contract was awarded by the Department of Labor, Office of the Assistant Secretary for Administration and Management, indicating established oversight channels. The Cost Plus Incentive Fee structure implies performance monitoring is part of the oversight process.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts.
Lack of specific performance metrics makes value assessment challenging.
Long contract duration may limit adaptability to evolving needs.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $45.2 million to RES-CARE, INC. OPERATION OF THE TULSA JCC

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $45.2 million.

What is the period of performance?

Start: 2008-09-01. End: 2014-02-28.

What specific services are included under 'Operation of the Tulsa JCC' and how do they align with the NAICS code 611519?

The NAICS code 611519 covers 'Other Technical and Trade Schools,' which typically includes institutions offering vocational and technical training. For the Tulsa JCC, this likely encompasses a range of services such as career counseling, academic instruction, vocational skills training, job placement assistance, and support services for students. The specific operational details would be outlined in the contract's statement of work.

How effectively did the Cost Plus Incentive Fee structure manage costs and incentivize performance for Res-Care, Inc. over the contract's duration?

Assessing the effectiveness of the Cost Plus Incentive Fee (CPIF) structure requires access to detailed performance data and cost reports. CPIF contracts aim to reward contractors for exceeding targets and penalize them for falling short, thereby aligning contractor incentives with government objectives. Without this granular data, it's impossible to definitively state how well costs were managed or performance was incentivized in this specific instance.

What was the impact of utilizing 'full and open competition' on the final contract price and the quality of services provided?

Full and open competition is designed to foster a competitive environment, theoretically leading to lower prices and higher quality services as contractors vie for the award. The extent to which this was achieved for the Tulsa JCC contract depends on the number and caliber of bids received. A robust competition generally benefits taxpayers by ensuring the government secures the best possible value.

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: S08F6OK003

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Harris Hill Nursing Facility LLC (UEI: 081017660)

Address: 9901 LINN STATION RD, LOUISVILLE, KY, 40223

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

Financial Breakdown

Contract Ceiling: $45,245,525

Exercised Options: $45,245,525

Current Obligation: $45,245,525

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline