Department of Labor's $100M Job Corps contract awarded to Career Systems Development Corporation for operational support

Contract Overview

Contract Amount: $100,356,048 ($100.4M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2009-07-01

End Date: 2014-11-30

Contract Duration: 1,978 days

Daily Burn Rate: $50.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF PITTSBURGH JOB CORPS CENTER WITH CAREER TRANSITION SERVICES

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15206

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $100.4 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATION OF PITTSBURGH JOB CORPS CENTER WITH CAREER TRANSITION SERVICES Key points: 1. The contract's cost-plus-incentive-fee structure suggests a focus on performance-based outcomes, potentially driving efficiency. 2. With a duration of nearly 2,000 days, the contract represents a significant, long-term investment in workforce development. 3. The award was made under full and open competition, indicating a broad market search for qualified providers. 4. The contract's value of approximately $100 million over its term suggests a substantial operational scope. 5. The specific North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The absence of small business set-aside flags suggests the primary contractor is likely a larger entity.

Value Assessment

Rating: fair

The contract value of $100,356,048 over approximately 5 years for operating a Job Corps center with career transition services appears substantial. Benchmarking this against similar Job Corps center operations would be necessary for a precise value-for-money assessment. The cost-plus-incentive-fee (CPIF) pricing structure aims to incentivize cost savings and performance, which can be a positive indicator if managed effectively. However, without detailed performance metrics and cost breakdowns, it's difficult to definitively assess if the pricing is competitive or represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that the Department of Labor sought proposals from all responsible sources. The presence of 3 bidders indicates a moderate level of competition for this significant contract. A higher number of bidders might typically lead to more aggressive pricing and potentially better value for the government, but three bidders still suggest a competitive environment was established.

Taxpayer Impact: The full and open competition process, with multiple bidders, likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are students enrolled in the Job Corps program, receiving training and career transition services. The contract delivers essential operational support for the Pittsburgh Job Corps Center. Services include career training and transition assistance, aiming to improve employability for participants. The geographic impact is focused on the Pittsburgh area and surrounding regions served by the Job Corps center. Workforce implications include the employment of staff to run the center and the development of a skilled workforce through the program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPIF contracts if not closely monitored.
Ensuring consistent quality of training and transition services across the contract duration.
Measuring the long-term success and career outcomes of program participants.

Positive Signals

CPIF structure incentivizes contractor performance and cost efficiency.
Full and open competition suggests a robust search for qualified providers.
Long contract duration provides stability for program operations and student services.

Sector Analysis

This contract falls within the Education and Training Services sector, specifically focusing on vocational and technical training. The Job Corps program is a significant federal initiative aimed at workforce development, serving disadvantaged youth. The market for operating such centers involves specialized educational providers and non-profit organizations. The contract value of approximately $100 million over five years is substantial within this niche, reflecting the scale of operations required for a comprehensive Job Corps center.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Career Systems Development Corporation, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures are likely embedded within the Cost Plus Incentive Fee (CPIF) structure, tying contractor payment to performance metrics. Transparency would be facilitated through contract reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed, the DOL OIG generally oversees departmental programs and contracts.

Related Government Programs

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

Risk Flags

Potential for cost overruns in CPIF contracts
Ensuring consistent service quality over long duration
Measuring long-term program effectiveness and student outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $100.4 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATION OF PITTSBURGH JOB CORPS CENTER WITH CAREER TRANSITION SERVICES

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 $100.4 million.

What is the period of performance?

Start: 2009-07-01. End: 2014-11-30.

What is the historical spending pattern for the operation of the Pittsburgh Job Corps Center?

The provided data details a single contract for the operation of the Pittsburgh Job Corps Center from July 1, 2009, to November 30, 2014, valued at approximately $100.36 million. This represents a significant investment over the nearly 5.4-year period. To understand the historical spending pattern, one would need to examine prior contracts for the same center, potentially from different awardees or the same contractor, and compare the annual spending and contract values. This would reveal trends in funding levels, contract duration, and the stability of the operational provider over time. Without access to historical contract databases or specific solicitations for this center prior to 2009, a comprehensive historical analysis is not possible with the given data.

How does the per-unit cost of training or student services compare to other Job Corps centers?

The provided data does not include specific metrics on the number of students served, the types of training provided, or the duration of student participation. Therefore, calculating a meaningful per-unit cost (e.g., cost per student trained, cost per training hour) is not feasible. To perform such a comparison, detailed operational data from the contractor, including enrollment numbers, program completion rates, and specific service delivery costs, would be required. Benchmarking against other Job Corps centers would then involve obtaining similar data for comparable centers and calculating standardized per-unit cost metrics. The contract's total value and duration offer a macro-level view, but micro-level cost efficiency analysis necessitates more granular operational data.

What is Career Systems Development Corporation's track record with federal contracts, particularly in workforce development?

Career Systems Development Corporation (CSDC) was awarded this specific contract for the operation of the Pittsburgh Job Corps Center. The provided data indicates they were the prime contractor for this significant federal award. To assess CSDC's broader track record, a search of federal procurement databases (like SAM.gov or FPDS) would be necessary to identify all contracts awarded to them, their values, performance ratings, and any past performance issues or awards. Experience with other Job Corps centers or similar workforce development programs would be particularly relevant. Without this broader search, we can only confirm their role in this specific, substantial contract.

What are the key performance indicators (KPIs) tied to the incentive fee in this contract?

The contract type is Cost Plus Incentive Fee (CPIF), which means the contractor's final profit is adjusted based on achieving certain performance targets. While the specific KPIs are not detailed in the provided data, they typically relate to program outcomes and operational efficiency. For a Job Corps center, common KPIs might include student enrollment rates, training completion rates, job placement rates post-graduation, average wages of placed graduates, and potentially cost-containment measures. The incentive fee structure is designed to motivate the contractor to exceed minimum performance standards and deliver greater value to the government and students.

What is the risk associated with the Cost Plus Incentive Fee (CPIF) contract structure for this service?

The primary risk with a CPIF contract is that while it incentivizes performance and cost control, it can also lead to complexities in defining and measuring targets, potentially resulting in disputes. If the incentive targets are poorly defined or unrealistic, they may not effectively drive desired outcomes or could lead to unintended contractor behaviors. Furthermore, the government bears the risk of the base cost, and while the incentive fee adjusts profit, the overall cost can still be substantial if performance is merely adequate. Effective government oversight is crucial to ensure the KPIs are appropriate, measurable, and that the contractor is genuinely motivated to achieve them without compromising service quality.

How does the competition level (3 bidders) impact the potential for cost savings for the government?

Having three bidders for this contract suggests a moderate level of competition. Generally, a higher number of bidders tends to drive prices down as companies compete more aggressively for the award. With three bidders, there is a reasonable expectation that the pricing submitted was competitive. However, it is less competitive than if, for example, five or more bidders had participated. The government's ability to secure cost savings is influenced not only by the number of bidders but also by the clarity of the solicitation requirements, the evaluation criteria, and the negotiation process. While three bidders provide a competitive baseline, the specific structure of the bids and the government's negotiation strategy would ultimately determine the extent of cost savings realized.

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

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

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

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

Financial Breakdown

Contract Ceiling: $3,110,155,780

Exercised Options: $2,006,997,304

Current Obligation: $100,356,048

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline