Dynamic Educational Systems Inc. contract for Carville JCC operations valued at $36.1M over 5 years

Contract Overview

Contract Amount: $36,125,707 ($36.1M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2009-05-01

End Date: 2014-10-31

Contract Duration: 2,009 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF CARVILLE JCC

Place of Performance

Location: CARVILLE, IBERVILLE County, LOUISIANA, 70721

State: Louisiana Government Spending

Plain-Language Summary

Department of Labor obligated $36.1 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: OPERATION OF CARVILLE JCC Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract type (Cost Plus Incentive Fee) can incentivize cost control but may lead to higher final costs. 3. Performance period spans over five years, indicating a long-term need for the services. 4. The contractor, Dynamic Educational Systems Inc., has secured this significant federal award. 5. The service falls under 'Other Technical and Trade Schools', highlighting a specific educational niche. 6. Awarded by the Department of Labor, indicating a focus on workforce development or related training.

Value Assessment

Rating: fair

The total award value of $36.1 million over five years averages to approximately $7.2 million annually. Benchmarking this against similar contracts for operational support of educational facilities is difficult without more specific service details. The Cost Plus Incentive Fee structure means the final cost could deviate from the initial estimate, making a direct value assessment challenging without post-award performance and cost data. However, the duration and scale suggest a substantial investment in these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With three bids received, the competition level appears moderate. This suggests that the government likely received competitive pricing, but the limited number of bidders might mean that the full potential for price discovery was not realized. Further analysis would require knowing the specific requirements and the number of potential bidders in the market.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process which generally leads to more favorable pricing. However, with only three bids, there's a possibility that more aggressive pricing could have been achieved with a larger pool of interested and capable contractors.

Public Impact

The primary beneficiaries are likely individuals participating in the programs or services offered at the Carville JCC. The contract supports the operation of the Carville JCC, which provides technical and trade education. The geographic impact is localized to Louisiana (LA), specifically the area served by the Carville JCC. Workforce implications include potential job creation for instructors, administrative staff, and support personnel at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not managed tightly.
The specific educational outcomes and effectiveness of the services provided are not detailed in the award data.
Limited competition (3 bidders) may have restricted the range of innovative solutions and potentially higher price points.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
The contract duration of over five years suggests a stable and ongoing need for these services.
The Department of Labor's involvement points to a focus on valuable workforce development or training initiatives.

Sector Analysis

The contract falls under the 'Other Technical and Trade Schools' (NAICS 611519) sector, which is part of the broader educational services industry. This sector encompasses institutions providing vocational, technical, and trade instruction. Federal spending in this area often supports workforce development, job training, and specialized skill acquisition. Comparable spending benchmarks would depend on the specific type and scale of training provided, but the $36.1 million award over five years indicates a significant investment in this particular facility or program.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Dynamic Educational Systems Inc., would determine any subcontracting opportunities. Without further information on the contractor's subcontracting plan or past performance, the impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management. As a Cost Plus Incentive Fee contract, rigorous financial oversight and performance monitoring would be expected to ensure that costs are reasonable and that performance targets are met. Transparency would depend on the Department of Labor's reporting practices and any Inspector General involvement related to the administration of this award.

Related Government Programs

Department of Labor Training Programs
Federal Workforce Development Initiatives
Vocational Education Grants
Job Corps Program

Risk Flags

Contract Duration
Cost Plus Incentive Fee Structure
Limited Competition Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $36.1 million to DYNAMIC EDUCATIONAL SYSTEMS INC. OPERATION OF CARVILLE JCC

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 (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $36.1 million.

What is the period of performance?

Start: 2009-05-01. End: 2014-10-31.

What is the specific nature of the services provided under the 'OPERATION OF CARVILLE JCC' contract?

The contract designation 'OPERATION OF CARVILLE JCC' and the NAICS code '611519' (Other Technical and Trade Schools) suggest that the services involve the management, administration, and potentially the delivery of educational or training programs at the Carville Job Corps Center (JCC). Job Corps centers are federally funded programs administered by the Department of Labor that provide vocational training and education to young adults. Therefore, Dynamic Educational Systems Inc. is likely responsible for the day-to-day operations, facility maintenance, student support services, and potentially the execution of training curricula at this specific center.

How does the Cost Plus Incentive Fee (CPIF) contract type typically affect contractor performance and costs?

A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and receives a fee that is adjusted based on performance relative to agreed-upon targets. In this case, the targets likely relate to cost, schedule, or technical performance. The 'incentive' aspect means that if the contractor exceeds performance targets (e.g., comes in under budget or achieves higher quality), their fee increases. Conversely, if they fall short, their fee decreases. This structure aims to motivate the contractor to control costs and achieve specific objectives, potentially leading to better value than a simple cost-plus contract. However, it also requires careful negotiation of the targets and fee structure, and ongoing monitoring by the government to ensure fairness and prevent unintended consequences.

What is the historical spending pattern for the operation of the Carville JCC by the Department of Labor?

The provided data shows a single award to Dynamic Educational Systems Inc. for the 'OPERATION OF CARVILLE JCC' from May 1, 2009, to October 31, 2014, with a total value of $36,125,707. This represents a five-year, seven-month period. To understand the historical spending pattern, one would need to examine contract awards prior to this period and potentially subsequent contracts if the operation continued under different awards or contractors. Without access to historical contract databases covering earlier periods or information on successor contracts, it's impossible to establish a comprehensive spending trend for this specific JCC operation. This award itself indicates a significant, multi-million dollar investment over its duration.

What are the potential risks associated with a five-year contract for operational services?

A five-year contract for operational services, like the one awarded to Dynamic Educational Systems Inc. for the Carville JCC, carries several potential risks. Firstly, the long duration increases the risk of cost escalation due to inflation or unforeseen changes in operating requirements that may not have been fully anticipated during the initial contract negotiation. Secondly, there's a risk of contractor complacency or a decline in service quality over time if performance monitoring is not consistently rigorous. Thirdly, market conditions or the specific needs the JCC serves might evolve significantly over five years, potentially making the contracted services less relevant or efficient. Finally, if the contractor's financial stability or management capabilities falter during the contract period, it could lead to service disruptions.

How does the NAICS code 611519 (Other Technical and Trade Schools) compare to other educational service sectors in federal spending?

The NAICS code 611519, 'Other Technical and Trade Schools,' represents a specific segment within the broader educational services sector. Federal spending in this category is typically directed towards workforce development, vocational training, and specialized skill acquisition, often through programs like Job Corps or specific agency training initiatives. Compared to broader categories like elementary/secondary education (NAICS 6111) or higher education (NAICS 6113), spending under 611519 is generally more targeted and focused on specific occupational skills. While overall federal education spending is vast, the portion allocated to technical and trade schools reflects a strategic investment in preparing individuals for specific industries and addressing labor market demands, often with a focus on underserved populations.

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: S09F6LA009

Offers Received: 3

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: $36,457,722

Exercised Options: $36,125,707

Current Obligation: $36,125,707

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline