Labor Department's $11.9M career transition services contract awarded to C H P INTERNATIONAL, INC. for New Jersey

Contract Overview

Contract Amount: $11,894,027 ($11.9M)

Contractor: C H P International, Inc.

Awarding Agency: Department of Labor

Start Date: 2008-03-01

End Date: 2013-08-31

Contract Duration: 2,009 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: NEW YORK/NEW JERSEY - OUTREACH AND ADMISSIONS CAREER TRANSITION SERVICES

Place of Performance

Location: EDISON, MIDDLESEX County, NEW JERSEY, 08817

State: New Jersey Government Spending

Plain-Language Summary

Department of Labor obligated $11.9 million to C H P INTERNATIONAL, INC. for work described as: NEW YORK/NEW JERSEY - OUTREACH AND ADMISSIONS CAREER TRANSITION SERVICES Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially complex procurement process. 2. The contract type is Cost Plus Incentive Fee, which can incentivize cost savings but also carries inherent cost risks. 3. Performance period spans over five years, suggesting a long-term need for these services. 4. The contract was awarded to a single vendor, C H P INTERNATIONAL, INC., raising questions about the extent of competition. 5. The North American Industry Classification System (NAICS) code 561990 covers 'All Other Support Services,' a broad category. 6. The contract's duration and value suggest a significant investment in workforce development for New Jersey.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Incentive Fee structure suggests that the final cost could vary based on performance and cost control. Given the broad service category, it's difficult to assess if the $11.9 million represents a competitive price without more detailed cost breakdowns or comparisons to similar, specialized career transition programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior relationships. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrowed field compared to a truly unrestricted full and open competition.

Taxpayer Impact: The exclusion of sources could potentially limit the number of competitive bids received, which might impact the government's ability to secure the lowest possible price for taxpayers. However, the 'full and open' aspect suggests an effort to solicit offers broadly within the defined parameters.

Public Impact

Benefits transitioning service members and potentially other individuals in New Jersey requiring career assistance. Delivers career transition services, likely including resume writing, job search assistance, and skills training. Geographic impact is focused on New Jersey. Workforce implications include supporting individuals in finding new employment and potentially enhancing the local labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee structure introduces potential for cost overruns if not managed tightly.
The 'exclusion of sources' in the competition method warrants scrutiny to ensure fairness and optimal pricing.
Broad NAICS code may indicate a less specialized service, potentially impacting effectiveness compared to targeted programs.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the services delivered.

Positive Signals

Awarded after a competitive process, suggesting an effort to find a suitable vendor.
The contract duration indicates a sustained commitment to addressing career transition needs.
Focus on a specific geographic area (New Jersey) allows for tailored support.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically under support services. The market for career transition and outplacement services is diverse, ranging from large HR consulting firms to specialized niche providers. Federal spending in this area often supports specific populations like transitioning military personnel or displaced workers. Benchmarks for similar government contracts would typically focus on cost per participant or cost per successful placement.

Small Business Impact

The contract details indicate that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this award. This suggests that the primary award went to a larger entity, and any subcontracting opportunities for small businesses would depend on the prime contractor's strategy. Without explicit subcontracting plans or goals, the direct impact on the small business ecosystem for this specific contract is likely limited.

Oversight & Accountability

Oversight would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures would be tied to the Cost Plus Incentive Fee contract terms, performance metrics, and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight information is often internal.

Related Government Programs

Department of Labor Employment Programs
Transition Assistance Programs (TAP)
Workforce Investment Act Programs

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Cost Plus Incentive Fee structure carries inherent cost risk.
Broad service category may lack specificity for optimal outcomes.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $11.9 million to C H P INTERNATIONAL, INC.. NEW YORK/NEW JERSEY - OUTREACH AND ADMISSIONS CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is C H P INTERNATIONAL, 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 $11.9 million.

What is the period of performance?

Start: 2008-03-01. End: 2013-08-31.

What specific career transition services are being provided under this contract?

The contract falls under NAICS code 561990, 'All Other Support Services,' and is for 'OUTREACH AND ADMISSIONS CAREER TRANSITION SERVICES.' While the exact service catalog isn't detailed in the provided data, typical services under such contracts include career counseling, resume and cover letter development, interview skills training, job search strategy assistance, networking support, and potentially skills assessment and vocational guidance. The 'outreach and admissions' aspect might imply a focus on engaging individuals into the program and facilitating their entry into the services offered.

How does the Cost Plus Incentive Fee (CPIF) structure work for this contract, and what are the potential risks?

A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and also receives a fee that is adjusted based on whether the final cost is below or above a pre-determined target cost. The 'incentive' part means the contractor is motivated to control costs to earn a higher fee. Risks include potential for cost overruns if the target cost is set too high or if unforeseen issues drive costs up significantly. It also requires robust government oversight to ensure costs are reasonable and allocable, and that the incentive structure is effectively driving desired outcomes without compromising quality.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' mean in the context of this award?

This procurement method signifies that the solicitation was intended for full and open competition, meaning all responsible sources were permitted to submit an offer. However, 'after exclusion of sources' indicates that specific potential offerors were deliberately excluded from the competition. This exclusion must be justified by the agency, often due to reasons like organizational conflicts of interest, security concerns, or specific capabilities required that only a limited number of entities possess. While aiming for competition, this clause suggests the field of potential bidders was narrowed prior to the solicitation.

Can the value of this contract be benchmarked against similar services?

Benchmarking this $11.9 million contract is difficult without more specific details on the scope of services, the number of individuals served, and the performance outcomes achieved. Career transition services can vary widely in cost depending on the intensity of support, duration, and specialization (e.g., military transition vs. general workforce). Comparable contracts might exist within the Department of Labor or Department of Defense (for military transitions), but direct comparisons require analyzing similar contract values, service levels, and geographic focus. The CPIF structure also adds variability to the final cost.

What is the track record of C H P INTERNATIONAL, INC. with federal contracts, particularly in workforce development?

Information on C H P INTERNATIONAL, INC.'s specific track record with federal contracts, especially in workforce development, is not provided in the initial data. A comprehensive analysis would require searching federal procurement databases (like FPDS or SAM.gov) for their contract history, including award amounts, agencies served, contract types, performance ratings, and any past performance issues or successes. Understanding their experience with similar service scopes and contract types (like CPIF) would be crucial for assessing their capability and reliability.

What are the expected performance outcomes and how are they measured for this contract?

The provided data does not specify the performance outcomes or metrics used to measure the success of this contract. For career transition services, typical performance indicators might include job placement rates, average time to re-employment, participant satisfaction surveys, wage levels achieved post-placement, and retention rates. Under a CPIF contract, these metrics are often tied to the incentive fee structure, meaning the contractor's financial reward is linked to achieving specific, pre-defined performance targets set by the agency.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1JC07NYNJ

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1040 N BLVD STE 220, OAK PARK, IL, 60301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $22,238,893

Exercised Options: $15,477,109

Current Obligation: $11,894,027

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline