Department of Labor's $82M Los Angeles Job Corps Center Lease Awarded to YWCA of Greater Los Angeles

Contract Overview

Contract Amount: $81,998,806 ($82.0M)

Contractor: Young Women's Christian Association of Greater LOS Angeles, California

Awarding Agency: Department of Labor

Start Date: 2009-05-21

End Date: 2032-10-31

Contract Duration: 8,564 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TAS::16 0182::TAS RECOVERY - LOS ANGELES JOB CORPS CENTER LEASE ARRA::YES::ARRA

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90010

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $82.0 million to YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER LOS ANGELES, CALIFORNIA for work described as: TAS::16 0182::TAS RECOVERY - LOS ANGELES JOB CORPS CENTER LEASE ARRA::YES::ARRA Key points: 1. The lease represents a significant long-term commitment for facility operations. 2. The contract's duration extends over 22 years, indicating a stable, ongoing need. 3. The firm-fixed-price structure aims to control costs over the contract's life. 4. The award was made under full and open competition, suggesting a broad market search. 5. The specific NAICS code points to a focus on real estate leasing services. 6. The contract is not set aside for small businesses, implying larger entities were expected to compete.

Value Assessment

Rating: fair

Benchmarking the value of this lease is challenging without comparable long-term Job Corps facility leases. The total award amount of $81,998,806.40 over 22 years suggests an average annual cost of approximately $3.73 million. This figure needs to be assessed against prevailing market rates for similar large-scale educational or community facility leases in the Los Angeles area. The firm-fixed-price contract type provides cost certainty for the government, but the overall value proposition depends heavily on the services and facility quality provided by the YWCA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Labor solicited proposals from all responsible sources. The number of bidders is not specified, but the competitive process is intended to ensure fair pricing and the selection of the best value. The open competition suggests that the agency sought a wide range of potential providers for the lease and associated services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality, as multiple entities vie for the contract.

Public Impact

The primary beneficiaries are students enrolled in the Los Angeles Job Corps Center, who will utilize the leased facilities for their training and education. The contract ensures the continued operation and provision of essential services for the Job Corps program in the Los Angeles region. The geographic impact is concentrated in Los Angeles, California, serving the local community and workforce development needs. The contract supports the workforce by providing employment opportunities through the YWCA of Greater Los Angeles and its operations at the Job Corps center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term lease commitment requires ongoing budget allocation and potential for price escalation if market conditions change significantly.
Dependence on a single provider for a critical facility over two decades could pose risks if performance degrades or the provider faces financial instability.
The fixed-price nature might limit flexibility if the government's needs evolve substantially over the 22-year period.

Positive Signals

The extensive duration of the lease suggests a stable and reliable partnership for a critical government function.
The firm-fixed-price contract provides budget certainty for the Department of Labor over the long term.
Awarding to a known entity like the YWCA may indicate a history of satisfactory performance or a strong existing relationship.

Sector Analysis

This contract falls within the Real Estate sector, specifically related to the leasing of property for government operations. The Job Corps program, managed by the Department of Labor, requires substantial physical infrastructure to deliver its vocational training and educational services. The market for large-scale facility leases can be competitive, with entities like non-profits, educational institutions, and private real estate firms bidding for such long-term commitments. The value is benchmarked against the significant operational needs of a federal program.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific small business subcontracting requirements were mandated. The award to the YWCA of Greater Los Angeles, a large non-profit organization, suggests that the scale and nature of the requirement were likely beyond the typical capacity or scope of small business set-aside programs. The absence of set-asides means that opportunities for small businesses would primarily arise indirectly through the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's contracting officers and program managers responsible for the Job Corps program. The Office of the Assistant Secretary for Administration and Management (OASAM) likely plays a role in the administrative aspects of the lease. Transparency is facilitated through contract databases, but detailed performance reviews and audits are typically internal processes unless specific Inspector General (IG) investigations are initiated.

Related Government Programs

Job Corps Program
Federal Real Estate Leases
Department of Labor Facilities Management
ARRA Funded Projects

Risk Flags

Long-term contract duration
Fixed-price contract type
Potential for market rate fluctuations over lease term

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $82.0 million to YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER LOS ANGELES, CALIFORNIA. TAS::16 0182::TAS RECOVERY - LOS ANGELES JOB CORPS CENTER LEASE ARRA::YES::ARRA

Who is the contractor on this award?

The obligated recipient is YOUNG WOMEN'S CHRISTIAN ASSOCIATION OF GREATER LOS ANGELES, CALIFORNIA.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $82.0 million.

What is the period of performance?

Start: 2009-05-21. End: 2032-10-31.

What is the historical spending pattern for the Los Angeles Job Corps Center lease?

The provided data indicates a single award for the Los Angeles Job Corps Center lease with a total value of $81,998,806.40, spanning from May 21, 2009, to October 31, 2032. This suggests a long-term, consistent need for the facility. The contract was awarded under the American Recovery and Reinvestment Act (ARRA) of 2009, implying it was part of a significant federal stimulus effort. Without prior contract data for this specific facility or similar leases under different programs, it's difficult to establish a detailed historical spending trend beyond this single, long-duration contract. The duration and value suggest a substantial and ongoing investment in providing Job Corps services in this location.

How does the annual cost of this lease compare to similar federal facility leases?

The annual cost for this lease averages approximately $3.73 million ($81,998,806.40 / 22.4 years). Comparing this figure requires access to data on similar long-term leases for educational, vocational training, or large community facilities managed by federal agencies. Without specific benchmarks for comparable leases in the Los Angeles area or nationally, it's challenging to definitively assess if this represents a competitive rate. Factors such as facility size, condition, location, included services, and market rental rates for commercial or institutional properties would need to be considered for a robust comparison. The firm-fixed-price nature provides cost certainty but doesn't inherently guarantee market competitiveness without external benchmarking.

What is the track record of the Young Women's Christian Association (YWCA) of Greater Los Angeles as a federal contractor, particularly for facility management?

The provided data lists the YWCA of Greater Los Angeles as the contractor for this lease. To assess their track record, one would need to examine their history with federal contracts, specifically related to managing facilities or operating programs similar to Job Corps. This would involve searching federal procurement databases (like FPDS or SAM.gov) for past awards, performance evaluations, and any reported issues or successes. A positive track record would involve consistent performance, adherence to contract terms, and potentially positive past performance reviews from agencies they have served. Conversely, any history of contract disputes, performance failures, or significant overruns would raise concerns.

What are the potential risks associated with a 22-year lease agreement for a Job Corps Center?

A 22-year lease agreement presents several potential risks. Firstly, the long duration locks the government into a specific facility and provider, potentially limiting flexibility if program needs change or if a better facility or provider becomes available later. Secondly, market conditions for real estate and services can fluctuate significantly over two decades, potentially leading to the government paying above-market rates if the fixed price is not regularly reviewed or adjusted appropriately. Thirdly, the financial stability and operational capacity of the contractor (YWCA of Greater Los Angeles) over such an extended period are critical; any decline in their performance or financial health could disrupt the Job Corps program. Finally, the fixed-price nature, while providing cost certainty, might disincentivize the contractor from investing in significant upgrades or efficiencies beyond what is contractually required.

How does the ARRA funding context influence the assessment of this contract's value and oversight?

The contract being funded by the American Recovery and Reinvestment Act (ARRA) of 2009 places it within a context of economic stimulus spending. ARRA projects were often initiated with urgency to create jobs and spur economic activity. This urgency could potentially impact the thoroughness of initial vetting or negotiation compared to standard procurement processes. However, ARRA also came with specific oversight requirements aimed at ensuring accountability and preventing waste. Therefore, while the initial award might have been influenced by stimulus goals, the contract should still be subject to ongoing performance monitoring and financial oversight by the Department of Labor to ensure value for taxpayer money and program effectiveness.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Residential Buildings and Dwellings

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOL099RP20660

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3345 WILSHIRE BLVD STE 300, LOS ANGELES, CA, 90010

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $81,998,806

Exercised Options: $81,998,806

Current Obligation: $81,998,806

Actual Outlays: $7,993,943

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline