Department of Labor's $54.5M Job Corps Center Contract Awarded to Management & Training Corporation
Contract Overview
Contract Amount: $54,502,898 ($54.5M)
Contractor: Management & Training Corporation
Awarding Agency: Department of Labor
Start Date: 2008-08-01
End Date: 2014-01-31
Contract Duration: 2,009 days
Daily Burn Rate: $27.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: OPERATION OF THE PAUL SIMON CHICAGO JOB CORPS CENTER
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60623
State: Illinois Government Spending
Plain-Language Summary
Department of Labor obligated $54.5 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE PAUL SIMON CHICAGO JOB CORPS CENTER Key points: 1. Contract value of $54.5M over its duration. 2. Competition method was 'FULL AND OPEN COMPETITION'. 3. Contract type is 'COST PLUS INCENTIVE FEE'. 4. The contract supports 'Other Technical and Trade Schools' (NAICS 611519). 5. The contract was awarded to a single vendor, Management & Training Corporation.
Value Assessment
Rating: fair
The contract type (Cost Plus Incentive Fee) allows for cost reimbursement with incentives for performance, which can lead to cost overruns if not managed tightly. Benchmarking against similar contracts for Job Corps centers is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the single award to Management & Training Corporation indicates they were the most competitive bidder.
Taxpayer Impact: Taxpayer funds are utilized for operating the Job Corps Center, aiming to provide job training. The effectiveness of this spending depends on the outcomes achieved by the program participants.
Public Impact
Provides job training and employment services to young adults. Operates the Paul Simon Chicago Job Corps Center. Supports workforce development initiatives in Illinois.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can be prone to cost escalation.
- Lack of specific performance metrics makes assessing value difficult.
- Long contract duration (2008-2014) may not reflect current market conditions.
Positive Signals
- Full and open competition suggests a competitive bidding process.
- Focus on job training addresses a critical societal need.
- Contract awarded to a single entity may indicate specialized capabilities.
Sector Analysis
The contract falls under the 'Other Technical and Trade Schools' sector, focusing on vocational training. Spending benchmarks for similar Job Corps center operations are not readily available, making direct comparison challenging.
Small Business Impact
The provided data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of Labor's Employment and Training Administration is responsible for oversight. The effectiveness of oversight would depend on performance reviews, audits, and adherence to contract terms.
Related Government Programs
- Other Technical and Trade Schools
- Department of Labor Contracting
- Employment and Training Administration Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Lack of specific performance metrics for value assessment.
- Long contract duration without clear justification for market relevance.
- No indication of small business participation.
- Limited transparency on cost-effectiveness per participant.
Tags
other-technical-and-trade-schools, department-of-labor, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $54.5 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE PAUL SIMON CHICAGO 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 $54.5 million.
What is the period of performance?
Start: 2008-08-01. End: 2014-01-31.
What was the average cost per participant trained under this contract, and how does it compare to national averages for similar programs?
The provided data does not include cost per participant. To assess value, this metric is crucial. Comparing it to national averages for Job Corps or similar workforce development programs would reveal if the $54.5M expenditure was efficient in delivering training services relative to outcomes.
What were the key performance indicators (KPIs) for Management & Training Corporation, and were they met to justify the incentive fee structure?
The contract details do not specify the KPIs or performance outcomes achieved by Management & Training Corporation. Understanding these metrics and their attainment is essential to evaluate if the incentive fee structure effectively drove desired results and represented good value for taxpayer money.
How did the final cost compare to the initial projected cost, and were there significant cost overruns or savings under the Cost Plus Incentive Fee structure?
The data does not provide a comparison between projected and final costs. For Cost Plus Incentive Fee contracts, analyzing this variance is key to understanding the effectiveness of the incentive mechanism and whether it controlled costs or led to overspending. This information is vital for assessing financial accountability.
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: DOLJ08RA00018
Offers Received: 1
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: $160,913,094
Exercised Options: $158,790,403
Current Obligation: $54,502,898
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2008-08-01
Current End Date: 2014-01-31
Potential End Date: 2014-01-31 00:00:00
Last Modified: 2021-04-30
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