Labor Department's $47.4M contract for job training services awarded to Minact, Inc. over six years

Contract Overview

Contract Amount: $47,392,388 ($47.4M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2009-09-01

End Date: 2015-02-28

Contract Duration: 2,006 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF SHREVEPORT JCC

Place of Performance

Location: SHREVEPORT, CADDO County, LOUISIANA, 71109

State: Louisiana Government Spending

Plain-Language Summary

Department of Labor obligated $47.4 million to MINACT, INC for work described as: OPERATION OF SHREVEPORT JCC Key points: 1. The contract provided essential job training and employment services, demonstrating a commitment to workforce development. 2. Awarded through full and open competition, suggesting a robust market for these services. 3. The contract's duration and cost indicate a significant investment in skill enhancement programs. 4. Performance was likely monitored through cost-plus-incentive-fee terms, aligning contractor incentives with government objectives. 5. The services fall within the 'Other Technical and Trade Schools' NAICS code, highlighting a specialized sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The cost-plus-incentive-fee structure suggests an attempt to control costs while incentivizing performance, but the total expenditure over six years is substantial. Further analysis would require understanding the specific outcomes achieved and comparing them to industry standards for similar training programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and service quality as contractors vie for the award. The number of bidders is not specified, but the open competition itself is a positive sign for price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in workforce development.

Public Impact

Individuals seeking job training and employment assistance were the primary beneficiaries. The contract facilitated the delivery of technical and trade skills, enhancing employability. Services were delivered in Louisiana, providing regional economic and workforce development benefits. The contract supported the workforce development sector, potentially creating or sustaining jobs within the training industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
The significant dollar amount over six years warrants scrutiny of long-term effectiveness and cost efficiency.
Absence of data on the number of bidders limits a full understanding of competitive intensity.

Positive Signals

Awarded through full and open competition, indicating a healthy market.
Cost-plus-incentive-fee structure aims to align contractor and government interests.
Contract duration suggests a sustained need and commitment to the services provided.

Sector Analysis

This contract falls within the broader education and training services sector, specifically under NAICS code 611519 (Other Technical and Trade Schools). This sector is crucial for workforce development, providing specialized skills training that aligns with industry demands. Comparable spending benchmarks would typically involve analyzing other government contracts for similar vocational and technical training programs, as well as private sector investments in employee upskilling.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available in the provided data. Without this information, it's impossible to assess the impact on the small business ecosystem or whether opportunities were specifically created for small businesses through this contract.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Labor's Employment and Training Administration. The cost-plus-incentive-fee (CPIF) contract type suggests performance-based oversight, where contractor performance against targets influences the final fee. Transparency would depend on the agency's reporting practices and the availability of contract performance data.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
Job Corps
Adult Education and Family Literacy Programs

Risk Flags

Contract duration is substantial, requiring ongoing performance monitoring.
Cost-plus-incentive-fee structure necessitates clear performance metrics and oversight.
Lack of detailed performance data limits comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $47.4 million to MINACT, INC. OPERATION OF SHREVEPORT JCC

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 $47.4 million.

What is the period of performance?

Start: 2009-09-01. End: 2015-02-28.

What was the specific nature of the 'OPERATION OF SHREVEPORT JCC' services provided under this contract?

The contract, identified by the description 'OPERATION OF SHREVEPORT JCC', was awarded to MINACT, INC. by the Department of Labor's Employment and Training Administration. Based on the NAICS code 611519 (Other Technical and Trade Schools), the services likely involved operating a Job Corps Center (JCC) or a similar facility in Shreveport, Louisiana. These operations typically include providing vocational training, academic instruction, career counseling, and support services to disadvantaged youth to help them gain employment and succeed in the workforce. The contract duration of over six years (September 1, 2009, to February 28, 2015) indicates a substantial and ongoing requirement for these workforce development services.

How does the $47.4 million total contract value compare to similar job training contracts awarded by the Department of Labor?

Comparing the $47.4 million total contract value for MINACT, INC.'s 'OPERATION OF SHREVEPORT JCC' requires context on the scale and scope of similar Department of Labor (DOL) contracts. DOL often funds large-scale Job Corps centers and other workforce development initiatives. Contracts for operating these centers can range significantly based on the number of trainees, the breadth of training programs offered, and the geographic region. Without specific data on the number of trainees served or the specific services mandated under this contract, a direct comparison is difficult. However, multi-million dollar contracts over several years are typical for the operation of major training facilities managed by the DOL, suggesting this contract was of a significant size commensurate with its operational scope.

What are the key performance indicators (KPIs) typically associated with Job Corps Center operations contracts?

Key performance indicators (KPIs) for Job Corps Center operations contracts, like the one awarded to MINACT, INC., generally focus on trainee outcomes and operational efficiency. Common KPIs include: trainee retention rates, completion rates for academic and vocational programs, job placement rates post-graduation, average wages of placed graduates, and employer satisfaction with placed graduates. Operational KPIs might include cost per trainee, adherence to budget, and compliance with safety and program standards. The cost-plus-incentive-fee (CPIF) structure of this contract implies that specific performance targets related to these KPIs would have been established, with bonuses or penalties applied to the contractor's fee based on their achievement.

What is the significance of the 'COST PLUS INCENTIVE FEE' (CPIF) contract type for this operation?

The 'COST PLUS INCENTIVE FEE' (CPIF) contract type signifies a shared-risk and reward model between the government and the contractor, MINACT, INC. In a CPIF contract, the final fee paid to the contractor is adjusted based on performance relative to pre-determined targets. For the 'OPERATION OF SHREVEPORT JCC', this means that MINACT, INC. would be reimbursed for allowable costs incurred, plus a base fee, but their final fee would increase if they exceeded performance goals (e.g., higher job placement rates) and decrease if they fell short. This structure incentivizes the contractor to not only control costs but also to achieve specific, measurable outcomes, aligning their business objectives with the government's goal of effective workforce development.

What does the duration of this contract (2009-2015) suggest about the stability and long-term needs for these job training services?

The contract's duration, spanning from September 1, 2009, to February 28, 2015 (over six years), strongly suggests a consistent and long-term need for the job training and operational services provided by MINACT, INC. at the Shreveport Job Corps Center (JCC). Such extended periods indicate that the services are considered essential for the Department of Labor's mission of workforce development and that the government sought a stable, experienced provider to ensure continuity. Awarding a contract for this length implies a strategic commitment to the program's objectives and a level of satisfaction with the provider's ability to meet ongoing requirements, rather than a short-term or pilot initiative.

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: S09F6LA013

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $50,852,302

Exercised Options: $47,392,388

Current Obligation: $47,392,388

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline