Career Systems Development Corporation awarded $96.6M contract for Job Corps vocational training

Contract Overview

Contract Amount: $96,582,455 ($96.6M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2008-10-01

End Date: 2014-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $48.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH AGES 16-24.

Place of Performance

Location: IMPERIAL BEACH, SAN DIEGO County, CALIFORNIA, 91932

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $96.6 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH AGES 16-24. Key points: 1. Contract provides vocational training for youth, addressing a critical workforce development need. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 5 years) indicates a significant, long-term commitment to this service. 4. The cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 5. The contract's focus on youth ages 16-24 targets a demographic often facing employment barriers. 6. The specific North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the services provided and the number of individuals trained. However, the total award amount of $96.6 million over approximately 5.5 years suggests a significant investment in vocational training. The cost-plus-incentive-fee (CPIF) pricing structure, while common, can lead to cost overruns if not carefully managed. Comparing this to other large-scale youth training programs would be necessary for a more precise value assessment.

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 bids. The presence of four bidders (no) suggests a reasonable level of competition for this service. This competitive environment is generally expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best value.

Public Impact

Young adults aged 16-24 benefit from vocational training and career development opportunities. The program aims to equip participants with skills for in-demand occupations. Services are delivered in California (SN: CALIFORNIA), impacting the local workforce development landscape. The contract supports the development of a skilled future workforce, potentially reducing unemployment among youth.

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.
Ensuring consistent quality of training across all program sites and instructors is a common challenge in large vocational programs.

Positive Signals

Full and open competition suggests a robust selection process and potential for good value.
The incentive fee structure can motivate the contractor to achieve specific performance outcomes.
The long contract duration indicates a sustained commitment to addressing youth unemployment through training.

Sector Analysis

This contract falls within the education and training services sector, specifically vocational and technical schooling. The market for such services is driven by the need for a skilled workforce and government initiatives to address unemployment and underemployment. Comparable spending benchmarks would involve looking at other large federal contracts for youth development, job training, and educational services, particularly those administered by the Department of Labor.

Small Business Impact

The provided data indicates that small business participation (SB: false) and set-asides (SS: false) were not explicitly part of this contract's award structure. This suggests the primary focus was on securing the best overall proposal through full and open competition rather than specifically targeting small businesses. There is no direct information on subcontracting plans for small businesses within this data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Employment and Training Administration (SA: Employment and Training Administration). Mechanisms likely include regular performance reviews, financial audits, and adherence to program reporting requirements. The effectiveness of oversight depends on the agency's capacity to monitor contractor performance against the terms of the Cost Plus Incentive Fee contract and ensure program goals are met.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
YouthBuild Program
Federal Job Training Programs
Department of Labor Grants

Risk Flags

Potential for cost overruns due to CPIF structure.
Ensuring consistent training quality and outcomes across diverse student populations.
Adapting curriculum to rapidly changing labor market demands.
Measuring long-term success and impact of vocational training.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $96.6 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH AGES 16-24.

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 $96.6 million.

What is the period of performance?

Start: 2008-10-01. End: 2014-03-31.

What specific vocational skills were prioritized under this Job Corps contract, and how did they align with current labor market demands in California?

The provided data does not specify the exact vocational skills prioritized under this particular Career Systems Development Corporation contract for Job Corps. Job Corps programs generally offer training in a wide range of fields, including healthcare, information technology, skilled trades (like construction and manufacturing), and transportation. The alignment with labor market demands is typically assessed by the Department of Labor and local workforce boards. To determine specific priorities for this contract, one would need to review the Statement of Work (SOW) or contract modifications. However, given the general nature of Job Corps, it's likely the training focused on occupations identified as having growth potential and skill shortages within the California region during the contract period (2008-2014).

How did the performance of Career Systems Development Corporation under this contract compare to other Job Corps contractors during the same period?

Assessing the comparative performance of Career Systems Development Corporation (CSDC) requires access to performance metrics and evaluations that are not included in the provided data. Job Corps performance is typically measured by metrics such as student graduation rates, job placement rates, starting wages of graduates, and employer satisfaction. The Department of Labor's Employment and Training Administration (ETA) would maintain these records. Without access to CSDC's specific performance reports and a benchmark against other contractors operating similar Job Corps centers during the 2008-2014 period, a direct comparison cannot be made. However, the contract's renewal or continuation would generally imply satisfactory performance, though specific details would be needed for a definitive assessment.

What were the primary risks identified during the solicitation and award of this contract, and what mitigation strategies were employed?

The provided data does not detail the specific risks identified during the solicitation and award phase for this contract. However, common risks associated with large vocational training contracts include contractor performance failures (e.g., low completion rates, poor job placement), cost overruns (especially with CPIF contracts), and challenges in adapting training to evolving labor market needs. Mitigation strategies typically involve robust performance standards in the contract, clear reporting requirements, incentive fee structures tied to key performance indicators (KPIs), and regular oversight by the contracting agency (Department of Labor). The 'full and open competition' itself acts as a risk mitigation strategy by allowing multiple vendors to propose solutions, fostering a competitive environment that can lead to better outcomes and pricing.

Can the Cost Plus Incentive Fee (CPIF) structure be analyzed to determine if it effectively incentivized CSDC to achieve optimal outcomes for the Job Corps program?

Analyzing the effectiveness of the Cost Plus Incentive Fee (CPIF) structure requires detailed knowledge of the specific incentive targets, the base fee, the ceiling fee, and the actual performance achieved by Career Systems Development Corporation (CSDC). In a CPIF contract, the final fee is adjusted based on whether the contractor meets, exceeds, or fails to meet certain performance objectives. For this Job Corps contract, the incentive fee likely would have been tied to metrics such as student enrollment, training completion rates, job placement success, and potentially post-placement retention or wage levels. Without the specific details of these targets and CSDC's actual performance against them, it's impossible to definitively state whether the CPIF structure was optimal. However, the intent of CPIF is to encourage efficiency and effectiveness by sharing the risks and rewards of performance.

What was the historical spending trend for Job Corps programs administered by the Department of Labor leading up to and during this contract period?

The provided data focuses solely on this specific contract awarded to Career Systems Development Corporation. To understand the historical spending trend for Job Corps programs administered by the Department of Labor (DOL) leading up to and during this contract period (2008-2014), one would need to consult DOL's budget documents and historical contract databases. Job Corps is a significant program, and its funding levels can fluctuate based on economic conditions, administration priorities, and congressional appropriations. Generally, federal spending on workforce development programs like Job Corps can increase during economic downturns as demand for training rises. Conversely, funding might be scrutinized during periods of economic growth. A comprehensive analysis would involve examining DOL's annual budget requests and outlays specifically allocated to Job Corps over several preceding years and during the contract's lifespan.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

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: $175,054,623

Exercised Options: $141,012,304

Current Obligation: $96,582,455

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline