Department of Labor awards $42M contract for New Haven Job Corps Center operations to Career Systems Development Corporation

Contract Overview

Contract Amount: $41,973,323 ($42.0M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2008-12-01

End Date: 2013-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF NEW HAVEN JOB CORPS CENTER

Place of Performance

Location: NEW HAVEN, NEW HAVEN County, CONNECTICUT, 06515

State: Connecticut Government Spending

Plain-Language Summary

Department of Labor obligated $42.0 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATION OF NEW HAVEN JOB CORPS CENTER Key points: 1. Contract value appears reasonable for a multi-year operational contract of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Incentive Fee) introduces performance-based incentives. 4. The duration of the contract (5 years) indicates a long-term commitment to service delivery. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools. 6. The contract was awarded to a single vendor, Career Systems Development Corporation. 7. The base value of $23M suggests significant potential for growth or adjustments over the contract term.

Value Assessment

Rating: good

The contract's base value of $22,999,999 over five years, with a total awarded amount of $41,973,323, suggests a significant investment in the Job Corps program. Benchmarking against similar large-scale operational contracts for educational or vocational training centers would be necessary for a precise value-for-money assessment. However, the use of full and open competition implies that pricing was likely scrutinized against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The fact that only one bid was received, however, warrants further investigation into the reasons behind the limited participation.

Taxpayer Impact: A competitive bidding process, even with a single responsive bidder, aims to ensure that taxpayer funds are used efficiently by seeking the best value. The government's ability to negotiate terms and pricing is crucial in such scenarios.

Public Impact

The primary beneficiaries are students enrolled in the New Haven Job Corps Center, who receive vocational training and educational services. The contract ensures the continued operation and delivery of critical workforce development programs in New Haven, Connecticut. Services include job training, education, career counseling, and placement assistance. The contract supports local employment through the operation of the center and potential subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite full and open solicitation may indicate potential issues with the solicitation process or market conditions.
The Cost Plus Incentive Fee (CPIF) contract type requires careful monitoring to ensure cost controls and effective incentive achievement.

Positive Signals

The use of full and open competition is a positive indicator of a commitment to fair market access.
The contract's duration suggests stability and a long-term commitment to the program's objectives.
The focus on vocational training aligns with federal goals for workforce development and economic opportunity.

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 at-risk youth with the skills and support needed to secure employment. The market for such services involves educational institutions, non-profit organizations, and private companies specializing in workforce development.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). However, the prime contractor, Career Systems Development Corporation, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to program-specific reporting requirements. The Inspector General's office may also conduct investigations into potential fraud, waste, or abuse.

Related Government Programs

Department of Labor Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Rehabilitation Services
Adult Education and Literacy Programs

Risk Flags

Limited competition despite full and open solicitation.
Potential for cost overruns inherent in CPIF contract type.
Need for robust performance monitoring to ensure program effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $42.0 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATION OF NEW HAVEN JOB CORPS 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 $42.0 million.

What is the period of performance?

Start: 2008-12-01. End: 2013-11-30.

What is the track record of Career Systems Development Corporation in managing similar Job Corps centers or large-scale training programs?

Assessing the track record of Career Systems Development Corporation (CSDC) is crucial for understanding their capability to manage the New Haven Job Corps Center effectively. While the provided data does not detail CSDC's past performance, a thorough review would involve examining their history with other government contracts, particularly those involving educational services, workforce development, or Job Corps center operations. Key performance indicators to investigate would include contract completion rates, audit findings, student placement success rates, and any instances of contract disputes or terminations. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance databases would be essential for a comprehensive evaluation of CSDC's experience and reliability in fulfilling the obligations of this significant contract.

How does the awarded amount compare to the operational costs of similar Job Corps centers across the country?

Comparing the awarded amount of $41,973,323 for the New Haven Job Corps Center over five years to similar facilities requires access to detailed operational cost data for other Job Corps centers. Factors influencing cost variations include geographic location, student population size, the scope of training programs offered, and local labor market conditions. A comprehensive benchmark analysis would involve gathering data on per-student costs, administrative overhead, and program delivery expenses from a representative sample of comparable centers. Without this granular data, it is challenging to definitively state whether the New Haven center's funding is above, below, or in line with national averages. However, the contract's base value of approximately $23 million suggests a substantial annual operational budget.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for Job Corps center operations?

A Cost Plus Incentive Fee (CPIF) contract, like the one awarded for the New Haven Job Corps Center, carries specific risks. The primary risk for the government is that the contractor may incur higher costs than anticipated if cost-control measures are not rigorously enforced, although the incentive fee structure is designed to mitigate this. The contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance against pre-determined targets (e.g., student completion rates, job placement success). Risks include potential disputes over the definition of 'target costs' or 'performance criteria,' and the possibility that the contractor might focus on achieving incentive targets at the expense of other critical program aspects. Effective oversight is paramount to ensure that costs remain reasonable and that the incentive structure genuinely drives desired outcomes without encouraging excessive spending.

What historical spending patterns exist for the operation of the New Haven Job Corps Center, and how does this award compare?

Analyzing historical spending for the New Haven Job Corps Center is essential to understand the context of this $41.97 million award. Previous contracts for the center's operation would reveal trends in annual expenditures, contractor performance, and any significant fluctuations in funding. For instance, if previous awards were consistently lower, this new contract might represent an expansion of services or an increase in operational costs due to inflation or program changes. Conversely, if prior contracts were of similar magnitude, this award could indicate a continuation of established funding levels. Accessing historical contract data, including award amounts, durations, and contractors, would allow for a direct comparison and an assessment of whether current spending aligns with past investment in the center.

What are the potential implications of having only one bidder respond to a full and open competition solicitation for this contract?

The scenario of receiving only one bid in a full and open competition solicitation for the New Haven Job Corps Center contract raises several concerns. It could suggest that the solicitation requirements were overly restrictive, the anticipated profit margins were insufficient to attract multiple bidders, or that the market for such specialized services is limited. This lack of competition can potentially lead to higher prices than might be achieved in a more robust bidding environment and may reduce the government's leverage in negotiations. Furthermore, it could indicate potential issues with the solicitation's outreach or clarity. The Department of Labor would need to analyze the reasons for the low bidder participation to ensure future solicitations are structured to encourage broader competition and achieve better value for taxpayers.

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: DOLJ07RFP0003

Offers Received: 1

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $81,197,337

Exercised Options: $59,168,838

Current Obligation: $41,973,323

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline