Department of Labor's $49.9M Dayton Job Corps Center contract awarded to Management & Training Corporation

Contract Overview

Contract Amount: $49,924,026 ($49.9M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2008-05-01

End Date: 2013-10-31

Contract Duration: 2,009 days

Daily Burn Rate: $24.9K/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 DAYTON JOB CORPS CENTER

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45417

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $49.9 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE DAYTON JOB CORPS CENTER Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 2. Awarded under full and open competition, indicating a broad market search for qualified providers. 3. The contract duration of approximately 5 years suggests a need for stable, long-term operational management. 4. The Dayton Job Corps Center focuses on vocational training, contributing to workforce development in Ohio. 5. The contract's value places it within a significant range for operational support services in the education sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison to similar Job Corps center operations. The cost-plus-incentive-fee (CPIF) pricing type can lead to cost overruns if not managed carefully, but it also incentivizes efficiency. Without specific performance metrics and outcomes data, a definitive value-for-money assessment is challenging. The total award value of nearly $50 million over five years suggests a substantial investment in operational support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple vendors were likely solicited and evaluated. The presence of two bids indicates a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of potential contractors to bid, potentially driving down costs and improving service quality through market forces.

Public Impact

The primary beneficiaries are students seeking vocational training and employment opportunities through the Job Corps program. The contract supports the operation and management of the Dayton Job Corps Center, delivering educational and career services. The geographic impact is focused on Ohio, specifically the Dayton area, providing local workforce development resources. Workforce implications include the employment of staff to run the center and the training of individuals for various trades, contributing to the regional labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if performance targets are not met efficiently.
Reliance on a single contractor for extended periods may reduce future competitive pressure.
Ensuring consistent quality of training and student outcomes across the contract duration requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The incentive fee structure encourages contractor performance aligned with government goals.
The contract supports a vital federal program aimed at workforce development and youth employment.

Sector Analysis

This contract falls within the Education and Training Services sector, specifically related to vocational and technical education. The Job Corps program is a significant federal initiative aimed at preparing young people for careers. Comparable spending benchmarks would involve analyzing other large-scale contracts for operating educational facilities or workforce development programs, considering factors like student capacity and service scope.

Small Business Impact

The provided data does not indicate whether small businesses were specifically targeted or subcontracted. However, the 'full and open competition' award type suggests that small businesses were eligible to bid. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized, and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures are likely tied to the performance standards and incentive fee structure within the contract. Transparency is generally facilitated through contract award databases and reporting requirements, though specific operational oversight details are not provided.

Related Government Programs

Department of Labor Job Corps Program
Federal Workforce Development Programs
Vocational Training Contracts
Educational Facility Management Contracts

Risk Flags

Cost-Plus-Incentive-Fee structure requires careful monitoring to prevent cost overruns.
Performance metrics and outcomes data are crucial for assessing true value for money.
Long-term operational contracts necessitate ongoing evaluation of contractor performance and service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $49.9 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE DAYTON JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING 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 $49.9 million.

What is the period of performance?

Start: 2008-05-01. End: 2013-10-31.

What is the historical spending trend for the operation of the Dayton Job Corps Center?

The provided data indicates a single award of $49,924,026 for the operation of the Dayton Job Corps Center from May 1, 2008, to October 31, 2013. This represents a five-year period. To understand the historical spending trend, one would need to examine prior contracts for this specific center, looking at their award values, durations, and any modifications. Additionally, comparing this contract's value to the average cost of operating similar Job Corps centers nationally or within the region would provide further context on spending patterns and potential fluctuations over time.

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

To determine the per-student cost, we would need the average number of students served by the Dayton Job Corps Center during the contract period (2008-2013) and the total cost incurred. The total award value is approximately $49.9 million. If, for example, the center served an average of 500 students annually over the five years (totaling 2,500 student-years), the average cost per student-year would be roughly $19,969. Benchmarking this against national averages or similar-sized centers would reveal if this contract represents a higher or lower cost. Factors like the intensity of training, types of programs offered, and local cost of living can influence per-student costs.

What specific performance metrics were used to determine the incentive fee for Management & Training Corporation?

The contract type is Cost Plus Incentive Fee (CPIF), which means the contractor's final reimbursement is based on actual allowable costs plus a variable fee that depends on meeting or exceeding certain performance targets. While the specific metrics are not detailed in the provided data, typical performance indicators for Job Corps center operations include student enrollment and retention rates, on-time graduation rates, job placement rates post-graduation, employer satisfaction with placed graduates, and compliance with safety and operational standards. The incentive fee would be adjusted based on the contractor's performance against these pre-defined metrics, rewarding superior performance and potentially reducing the fee for subpar results.

What is the track record of Management & Training Corporation in operating federal Job Corps centers?

Management & Training Corporation (MTC) is a significant operator of Job Corps centers and other correctional and detention facilities. A comprehensive review of MTC's track record would involve examining their performance across multiple contracts, including their success in meeting performance metrics, managing costs, and adhering to federal regulations. Data from contract performance reports, past performance reviews, and any documented instances of contract disputes or corrective actions would be crucial. Generally, MTC has a long history of operating such facilities, but the quality and efficiency of their operations can vary by contract and location.

Were there any significant contract modifications or overruns during the life of this contract?

The provided data does not include information on contract modifications, change orders, or actual expenditures versus the awarded amount. To assess potential overruns or significant modifications, one would need to access the contract's official file, which typically details any amendments, their justifications, and their impact on the total contract value and period of performance. Significant modifications could indicate unforeseen challenges, scope changes, or issues with initial cost estimations. Without this detailed contract history, it's impossible to determine if overruns or major changes occurred.

What is the anticipated impact of this contract on local employment in Dayton, Ohio?

The operation of the Dayton Job Corps Center under this contract would directly create and sustain jobs for center staff, including instructors, administrators, support personnel, and maintenance workers. Indirectly, it supports local businesses through procurement of goods and services. Furthermore, the primary goal of the Job Corps program is to train individuals for employment, thereby contributing to the local and regional workforce by equipping residents with in-demand skills, potentially leading to increased employability and economic activity in the Dayton area.

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: DOLJ08RA00016

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $97,109,273

Exercised Options: $88,457,682

Current Obligation: $49,924,026

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline