Department of Labor's $28.7M Blue Ridge Job Corps Center contract awarded to RES-CARE, INC

Contract Overview

Contract Amount: $28,739,428 ($28.7M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2008-04-01

End Date: 2013-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF BLUE RIDGE JOB CORPS CENTER

Place of Performance

Location: MARION, SMYTH County, VIRGINIA, 24354

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $28.7 million to RES-CARE, INC for work described as: OPERATION OF BLUE RIDGE JOB CORPS CENTER Key points: 1. The contract's cost-plus-incentive fee structure suggests a focus on performance-based outcomes. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract duration of over five years implies a significant, long-term service requirement. 4. The primary service area is Virginia, suggesting a localized impact for the Job Corps program. 5. The North American Industry Classification System (NAICS) code 611519 points to vocational training services.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided and the number of students served. However, the total award amount of $28.7 million over five years suggests a substantial investment in workforce development. Without comparable contracts for similar Job Corps centers or detailed cost breakdowns, a precise value-for-money assessment is challenging. The cost-plus-incentive fee (CPIF) pricing structure aims to align contractor incentives with government objectives, potentially leading to better performance and cost control if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is generally expected to foster price discovery and potentially lead to more competitive pricing. The fact that it was competed openly implies that the Department of Labor sought the best value proposition from the market. The number of bidders, however, is not specified, which limits a deeper analysis of the actual competitive intensity.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of obtaining services at a competitive price, preventing potential overpayment that could arise from less competitive procurement methods.

Public Impact

The primary beneficiaries are individuals seeking vocational training and employment opportunities through the Job Corps program. The contract supports the delivery of educational and training services aimed at improving participants' job skills and employability. The geographic impact is concentrated in Virginia, where the Blue Ridge Job Corps Center is located. Workforce implications include the creation of jobs for instructors, administrative staff, and support personnel at the center, as well as the development of a skilled workforce for the regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics and outcome data makes it difficult to assess the effectiveness of the training provided.
The CPIF contract type, while incentivizing performance, can lead to cost overruns if not closely monitored and managed.
Limited information on the specific scope of work and deliverables hinders a comprehensive risk assessment.
The duration of the contract (over 5 years) could pose a risk if the program's needs or effectiveness change significantly over time.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair procurement process.
The CPIF structure is designed to reward successful performance, potentially leading to higher quality services.
The contract supports a well-established federal program (Job Corps) with a clear mission of workforce development.
The long-term nature of the contract provides stability for service delivery and program continuity.

Sector Analysis

This contract falls within the education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at providing disadvantaged youth with the skills and education needed to secure employment. The market for such services includes a range of educational institutions, non-profit organizations, and private companies specializing in workforce development. Comparable spending benchmarks would typically involve analyzing the operational costs and contract values of other Job Corps centers or similar government-funded training programs.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no information regarding small business set-asides for this contract. This suggests that the primary award was not specifically targeted towards small businesses. Further investigation would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor, RES-CARE, INC. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurred.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to program-specific regulations. Accountability is driven by the CPIF structure, which links contractor payment to performance outcomes. Transparency is generally facilitated through contract award databases and public reporting requirements, although detailed operational data may be less accessible.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Education Contracts

Risk Flags

Contract Duration
Performance Measurement Clarity
Cost Control Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $28.7 million to RES-CARE, INC. OPERATION OF BLUE RIDGE JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is RES-CARE, 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 $28.7 million.

What is the period of performance?

Start: 2008-04-01. End: 2013-09-30.

What is the historical spending trend for the Blue Ridge Job Corps Center contract?

The provided data indicates a single definitive contract for the "OPERATION OF BLUE RIDGE JOB CORPS CENTER" awarded to RES-CARE, INC. with a total value of $28,739,428, spanning from April 1, 2008, to September 30, 2013. This represents a five-year period. Without access to prior or subsequent contracts for this specific center, it is not possible to establish a historical spending trend. However, the duration and value suggest a significant and consistent investment in operating the center over that contract period. Further analysis would require accessing historical contract databases for the Department of Labor and specifically for Job Corps center operations.

How does the cost per student for this contract compare to other Job Corps centers?

Determining the cost per student requires knowing the total number of students served by the Blue Ridge Job Corps Center during the contract period (2008-2013) and dividing it by the total contract value of $28.7 million. This information is not directly available in the provided data. To perform a meaningful comparison, one would need to access annual performance reports or operational data for the Blue Ridge center and similar Job Corps centers nationwide. These reports often contain metrics on enrollment, completion rates, and cost per participant. Without these figures, a benchmark for cost-effectiveness per student cannot be established.

What specific training programs and services were included in this contract?

The contract is for the "OPERATION OF BLUE RIDGE JOB CORPS CENTER," which falls under NAICS code 611519 (Other Technical and Trade Schools). Job Corps centers typically offer a range of vocational training programs in various industries, such as healthcare, information technology, construction, and advanced manufacturing, depending on local labor market demands. Services usually include academic instruction (GED/high school diploma), career counseling, job placement assistance, and sometimes residential support. The specific curriculum and services offered under this particular contract would be detailed in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the definitive contract, which is not provided here.

What is RES-CARE, INC.'s track record with federal contracts, particularly in education or job training?

RES-CARE, INC. has a history of operating federal contracts, including those related to correctional facilities and human services. Their involvement with the Job Corps program, as indicated by this contract, suggests experience in managing large-scale educational and training initiatives. A comprehensive review of their federal contracting history would involve searching databases like SAM.gov or FPDS for other awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Their ability to secure and perform on this multi-year, multi-million dollar contract implies a certain level of capability and past performance recognized by the Department of Labor.

What were the key performance indicators (KPIs) and incentives under the Cost Plus Incentive Fee (CPIF) structure?

The provided data specifies the contract type as Cost Plus Incentive Fee (CPIF), but it does not detail the specific Key Performance Indicators (KPIs) or the incentive fee structure. In a CPIF contract, the final fee (profit) is adjusted based on the contractor's performance against pre-determined targets. For a Job Corps center operation, typical KPIs might include student enrollment numbers, on-time graduation rates, job placement rates post-graduation, average wages of placed graduates, and student satisfaction. The incentive fee would be calculated based on how well RES-CARE, INC. met or exceeded these targets, potentially earning a higher fee for superior performance or a reduced fee for underperformance, within defined limits.

Were there any significant challenges or disputes during the performance of this contract?

Information regarding specific challenges, disputes, or contract modifications for this particular contract (OPERATION OF BLUE RIDGE JOB CORPS CENTER, 2008-2013) is not available in the provided summary data. To ascertain this, one would typically need to consult contract modification logs, official contract dispute records, or performance reviews (like CPARS) if they are publicly accessible. Federal contract databases sometimes contain information on major modifications or claims, but detailed day-to-day operational challenges are usually internal to the contracting agency and the contractor unless they escalate to formal disputes or legal actions.

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: 07-JC-REG2-BLRG

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carestream Health, Inc. (UEI: 244882650)

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: $886,547,001

Exercised Options: $646,510,946

Current Obligation: $28,739,428

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline