Department of Labor's $43M contract for Montgomery Job Corps Center operations awarded to Dynamic Educational Systems Inc

Contract Overview

Contract Amount: $42,992,376 ($43.0M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2008-10-01

End Date: 2014-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $21.4K/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 MONTGOMERY JOB CORPS CENTER WHICH INCLUDES THE PROVIDING ACADEMIC, CAREER TECHNICAL SKILLS, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SERVICES FOR 322 STUDENTS.

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36108

State: Alabama Government Spending

Plain-Language Summary

Department of Labor obligated $43.0 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: OPERATION OF THE MONTGOMERY JOB CORPS CENTER WHICH INCLUDES THE PROVIDING ACADEMIC, CAREER TECHNICAL SKILLS, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SERVICES FOR 322 STUDENTS. Key points: 1. Contract provides comprehensive academic, technical, social, and career development training for 322 students. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee (CPIF), which incentivizes the contractor to control costs. 4. The duration of the contract spans over five years, indicating a long-term commitment to the program. 5. The contract value of $43 million over its term suggests a significant investment in workforce development. 6. The North American Industry Classification System (NAICS) code 611519 points to specialized training services.

Value Assessment

Rating: good

The contract value of $43 million over approximately 5.5 years for operating a Job Corps center with 322 students appears reasonable. Benchmarking against similar Job Corps center operations would provide a more precise value-for-money assessment. The CPIF contract type allows for cost control while incentivizing performance, which is a positive sign for efficient resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive environment is generally expected to lead to better pricing and service quality as contractors vie for the award. The presence of two bids suggests a moderate level of competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a market-driven approach to service provision, potentially leading to cost savings and higher quality outcomes compared to non-competitive awards.

Public Impact

The primary beneficiaries are the 322 students enrolled in the Montgomery Job Corps Center, who receive academic and vocational training. The services delivered include academic instruction, career technical skills training, social skills development, and career placement assistance. The geographic impact is focused on Alabama, specifically serving students in the Montgomery area. The contract has significant workforce implications, aiming to equip students with skills for employment and contribute to the local and 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 not managed closely.
Ensuring consistent quality of training across all program areas requires robust oversight.
Measuring long-term employment success and career advancement of graduates is crucial for program effectiveness.

Positive Signals

The contract's focus on academic, technical, and social skills development provides a holistic approach to student success.
The long-term nature of the contract allows for sustained program delivery and impact.
Awarding under full and open competition suggests a commitment to obtaining the best value for taxpayer dollars.

Sector Analysis

This contract falls within the education and training services sector, specifically focusing on vocational and technical training. The Job Corps program is a significant federal initiative aimed at workforce development. Comparable spending benchmarks would involve analyzing other federal contracts for operating similar educational and training facilities, as well as the overall federal investment in workforce development programs.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, under full and open competition, there is an opportunity for small businesses to compete directly or to be included as subcontractors by the prime contractor. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight of this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures would be tied to the performance metrics outlined in the Cost Plus Incentive Fee contract, focusing on student outcomes, cost control, and program delivery. Transparency would be enhanced through regular reporting requirements and potential audits.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs

Risk Flags

Cost Overrun Potential
Performance Measurement Complexity
Contractor Accountability
Long-Term Program Sustainability

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.0 million to DYNAMIC EDUCATIONAL SYSTEMS INC. OPERATION OF THE MONTGOMERY JOB CORPS CENTER WHICH INCLUDES THE PROVIDING ACADEMIC, CAREER TECHNICAL SKILLS, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SERVICES FOR 322 STUDENTS.

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 $43.0 million.

What is the period of performance?

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

What is the historical spending pattern for the Montgomery Job Corps Center operations?

The provided data indicates a contract value of $42,992,376 for the operation of the Montgomery Job Corps Center from October 1, 2008, to March 31, 2014. This represents a period of approximately 5.5 years. To understand the historical spending pattern, one would need to examine previous contracts for this center, including their values, durations, and the contractors awarded. Analyzing trends in annual spending, cost increases or decreases over time, and the number of bids received for prior solicitations would provide a comprehensive view of the historical financial commitment to this specific Job Corps center.

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

The total contract value is $42,992,376 for 322 students over approximately 5.5 years. This equates to an average annual cost per student of roughly $237,000 ($42,992,376 / 322 students / 5.5 years). To compare this to other Job Corps centers, data on the operational costs per student for similar centers nationwide would be required. Factors such as geographic location, cost of living, specific training programs offered, and student demographics can influence per-student costs. A detailed comparison would involve normalizing these costs to account for such variations.

What are the key performance indicators (KPIs) for Dynamic Educational Systems Inc. under this contract?

While specific KPIs are not detailed in the provided data, Cost Plus Incentive Fee (CPIF) contracts typically tie contractor performance to achieving specific objectives that are measurable and quantifiable. For a Job Corps center operation, these KPIs would likely include student enrollment and retention rates, academic achievement levels (e.g., graduation rates, GED attainment), career technical skill attainment, job placement rates post-graduation, and average wages of placed graduates. The 'incentive fee' portion of the contract would be directly linked to the contractor's success in meeting or exceeding these performance targets, incentivizing them to deliver high-quality training and outcomes.

What is the track record of Dynamic Educational Systems Inc. in operating Job Corps centers or similar programs?

The provided data identifies Dynamic Educational Systems Inc. as the contractor for the Montgomery Job Corps Center. To assess their track record, a review of their past performance on this and other federal contracts, particularly those related to education, training, and workforce development, would be necessary. This would involve examining past performance evaluations, any contract disputes or awards, and their history with the Department of Labor or other agencies. A contractor's experience and demonstrated success in managing similar complex programs are critical indicators of their capability to fulfill the requirements of this contract effectively.

What are the potential risks associated with a Cost Plus Incentive Fee (CPIF) contract for this type of service?

CPIF contracts, while offering flexibility and incentivizing performance, carry inherent risks. For the Montgomery Job Corps Center, a primary risk is that the 'cost plus' nature could lead to higher-than-expected expenditures if the contractor's cost control measures are not robust or if unforeseen operational challenges arise. The 'incentive fee' component requires clearly defined and measurable performance metrics; if these are poorly defined or difficult to track, the incentive may not effectively drive desired outcomes. Furthermore, disputes can arise over the allowability of costs or the achievement of performance targets, potentially leading to contract modifications or litigation. Effective government oversight is crucial to mitigate these risks by closely monitoring costs and performance.

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: MONTGOMERY JCC

Offers Received: 2

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: $49,359,361

Exercised Options: $44,359,652

Current Obligation: $42,992,376

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline