Department of Labor's Job Corps contract with Dynamic Educational Systems Inc. awarded $26.7M for employment services

Contract Overview

Contract Amount: $26,712,877 ($26.7M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2008-04-01

End Date: 2013-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: JOB CORPS IS A NATIONAL RESIDENTIAL TRAINING AND EMPLOYMENT PROGRAM ADMINISTERED BY THE DEPARTMENT OF LABOR TO ADDRESS BARRIERS TO EMPLOYMENT.

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85021

State: Arizona Government Spending

Plain-Language Summary

Department of Labor obligated $26.7 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: JOB CORPS IS A NATIONAL RESIDENTIAL TRAINING AND EMPLOYMENT PROGRAM ADMINISTERED BY THE DEPARTMENT OF LABOR TO ADDRESS BARRIERS TO EMPLOYMENT. Key points: 1. The contract supports a national residential training and employment program. 2. Dynamic Educational Systems Inc. is the contractor for these services. 3. The Department of Labor is the administering agency. 4. The contract aims to address employment barriers for participants.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $26.7M needs further context to assess value against similar programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing.

Taxpayer Impact: Taxpayer funds are utilized for this national employment program, with the effectiveness and efficiency of service delivery being key to justifying the expenditure.

Public Impact

Provides job training and employment services to individuals facing barriers. Operates nationally, impacting diverse populations across the United States. Aims to improve workforce participation and economic self-sufficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can incentivize contractor to increase costs.
Contract duration is long (5 years), increasing risk of cost escalation.
No small business participation noted.

Positive Signals

Full and open competition utilized.
Addresses critical employment barriers.
National scope of program.

Sector Analysis

This contract falls under 'All Other Support Services' (NAICS 561990), a broad category. Benchmarking requires comparison to other large-scale workforce development and training programs.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the contract precluded small business involvement.

Oversight & Accountability

The Department of Labor administers the Job Corps program. Oversight would focus on program outcomes, participant success rates, and financial management to ensure accountability for taxpayer funds.

Related Government Programs

All Other Support Services
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Long contract duration increases risk.
Cost Plus Incentive Fee structure can lead to cost overruns.
No small business participation noted.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $26.7 million to DYNAMIC EDUCATIONAL SYSTEMS INC. JOB CORPS IS A NATIONAL RESIDENTIAL TRAINING AND EMPLOYMENT PROGRAM ADMINISTERED BY THE DEPARTMENT OF LABOR TO ADDRESS BARRIERS TO EMPLOYMENT.

Who is the contractor on this award?

The obligated recipient is DYNAMIC EDUCATIONAL SYSTEMS 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 $26.7 million.

What is the period of performance?

Start: 2008-04-01. End: 2013-09-30.

What are the key performance indicators (KPIs) for this contract and how has Dynamic Educational Systems Inc. performed against them?

Key performance indicators would likely include participant job placement rates, wage levels achieved post-training, and program completion rates. Performance against these KPIs is crucial for assessing the value and effectiveness of the contract. Without specific performance data, it's difficult to definitively gauge the success of Dynamic Educational Systems Inc. in meeting the program's objectives and justifying the $26.7M investment.

What is the historical cost performance of Cost Plus Incentive Fee contracts within the Department of Labor for similar services?

Cost Plus Incentive Fee (CPIF) contracts, while designed to incentivize performance, carry inherent risks of cost escalation if not rigorously managed. Historical data from the Department of Labor for similar workforce development contracts would be essential to benchmark the $26.7M award. Understanding the typical cost growth and final award amounts for CPIF contracts in this sector can help determine if this specific contract represents a fair price or a potential area of concern for taxpayer funds.

How effectively does the Job Corps program, as implemented by Dynamic Educational Systems Inc., address the identified barriers to employment compared to alternative training models?

The effectiveness of the Job Corps program in addressing employment barriers is paramount to its value. This requires evaluating participant outcomes, such as long-term employment retention and wage progression, against program costs. Comparing these outcomes to other federal or state-funded training initiatives would provide a clearer picture of the program's relative success and whether the current model, under this contract, is the most efficient and impactful use of federal resources.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOLJ08SA00002

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exodyne Inc. (UEI: 073512048)

Address: 8433 N BLACK CANYON HWY STE 184, PHOENIX, AZ, 85021

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,487,957

Exercised Options: $39,487,957

Current Obligation: $26,712,877

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline