Department of Labor awards $47.6M contract to MINACT, INC for Job Corps Center operations
Contract Overview
Contract Amount: $47,599,286 ($47.6M)
Contractor: Minact, Inc
Awarding Agency: Department of Labor
Start Date: 2008-10-01
End Date: 2019-06-28
Contract Duration: 3,922 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: OPERATION OF THE BL HOOKS JOB CORPS CENTER
Place of Performance
Location: MEMPHIS, SHELBY County, TENNESSEE, 38116
Plain-Language Summary
Department of Labor obligated $47.6 million to MINACT, INC for work described as: OPERATION OF THE BL HOOKS JOB CORPS CENTER Key points: 1. Contract awarded to MINACT, INC for Job Corps Center operations. 2. The contract spans over 10 years, indicating a long-term need. 3. The total award value is $47.6 million. 4. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives. 5. The sector appears to be education/training services.
Value Assessment
Rating: fair
The contract value of $47.6M over nearly 11 years averages to approximately $4.3M annually. Benchmarking this against similar contracts for operating educational facilities would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The price discovery mechanism is tied to the Cost Plus Incentive Fee structure, incentivizing cost efficiency.
Taxpayer Impact: Taxpayer funds are being used to operate the Job Corps Center, providing vocational training and employment services.
Public Impact
Provides vocational training and employment services to youth. Supports the Department of Labor's mission to prepare workers for jobs. The long duration suggests a sustained program impacting many individuals over time.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may limit flexibility for future program adjustments.
- Cost Plus Incentive Fee contracts can sometimes lead to higher costs if not managed tightly.
Positive Signals
- Full and open competition suggests a potentially competitive award.
- The contract aims to provide valuable workforce development services.
Sector Analysis
The sector is educational services, specifically vocational training through the Job Corps program. Annual spending on similar contracts can vary widely based on the size and scope of the facility.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award.
Oversight & Accountability
Oversight would typically be managed by the Department of Labor's Employment and Training Administration to ensure the contractor meets performance requirements and manages funds appropriately.
Related Government Programs
- Other Technical and Trade Schools
- Department of Labor Contracting
- Employment and Training Administration Programs
Risk Flags
- Long contract duration
- Cost Plus Incentive Fee contract type
- Potential for cost overruns
- Need for robust performance monitoring
Tags
other-technical-and-trade-schools, department-of-labor, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $47.6 million to MINACT, INC. OPERATION OF THE BL HOOKS JOB CORPS CENTER
Who is the contractor on this award?
The obligated recipient is MINACT, 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 $47.6 million.
What is the period of performance?
Start: 2008-10-01. End: 2019-06-28.
What is the cost-effectiveness of the Job Corps Center operations under this contract compared to similar programs?
Assessing cost-effectiveness requires detailed performance metrics and comparison with other Job Corps centers or similar vocational training initiatives. Without specific data on student outcomes, completion rates, and post-training employment success, a definitive judgment on cost-effectiveness is difficult. The CPIF structure suggests an attempt to link cost to performance, but the actual efficiency depends on the incentive structure and contractor execution.
What are the primary risks associated with a long-term Cost Plus Incentive Fee contract for operating a Job Corps Center?
Key risks include potential cost overruns if performance incentives are poorly designed or if operational challenges arise unexpectedly. There's also a risk of contractor complacency over a long duration, potentially impacting service quality. Furthermore, the government may face challenges adapting the program to evolving workforce needs or economic conditions due to the fixed, long-term nature of the contract.
How effectively does this contract support the Department of Labor's mission of workforce development?
The contract directly supports the mission by funding the operation of a Job Corps Center, which provides crucial vocational training and employment assistance to disadvantaged youth. Its effectiveness hinges on the contractor's ability to deliver high-quality training, facilitate job placements, and achieve positive long-term employment outcomes for participants, thereby contributing to a skilled workforce.
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: DOLJ08UA00017
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 5220 KEELE ST, JACKSON, MS, 39206
Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,646,606
Exercised Options: $49,850,359
Current Obligation: $47,599,286
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2008-10-01
Current End Date: 2019-06-28
Potential End Date: 2019-06-28 00:00:00
Last Modified: 2020-04-24
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