Labor Department's $42.5M JCC Contract with MINACT, INC. Raises Questions on Value and Competition

Contract Overview

Contract Amount: $42,502,697 ($42.5M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2009-06-01

End Date: 2014-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE Q. BURDICK JCC

Place of Performance

Location: MINOT, WARD County, NORTH DAKOTA, 58703

State: North Dakota Government Spending

Plain-Language Summary

Department of Labor obligated $42.5 million to MINACT, INC for work described as: OPERATION OF THE Q. BURDICK JCC Key points: 1. The contract awarded to MINACT, INC. for $42.5 million represents a significant investment in technical and trade schools. 2. Full and open competition was cited, but the specific impact on price discovery needs further examination. 3. The cost-plus incentive fee structure introduces potential for cost overruns if not managed tightly. 4. The 'Other Technical and Trade Schools' sector is broad, making direct benchmarking challenging without more detail.

Value Assessment

Rating: questionable

The contract's total value of $42.5 million over five years is substantial. Without specific performance metrics or comparable contract data for 'Other Technical and Trade Schools,' assessing value for money is difficult. The cost-plus incentive fee structure warrants close monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the effectiveness of this competition in securing the best value for the government is not detailed.

Taxpayer Impact: Taxpayer funds totaling $42.5 million are allocated to this contract, emphasizing the need for efficient and effective service delivery.

Public Impact

Potential impact on workforce development and training programs funded by the Department of Labor. Questions regarding the effectiveness and efficiency of the services provided by MINACT, INC. The long duration of the contract (over 5 years) suggests a critical need for the services, but also a long-term financial commitment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus incentive fee structure can lead to higher costs if not managed.
Lack of detailed performance metrics makes value assessment difficult.
Broad service category ('Other Technical and Trade Schools') hinders specific benchmarking.
Long contract duration requires sustained oversight.

Positive Signals

Awarded under full and open competition.
Contract supports essential training and employment services.

Sector Analysis

The contract falls under the 'Other Technical and Trade Schools' category, which is broad. Spending in this sector can vary widely based on the specific services offered and the scale of operations. Benchmarking is difficult without more granular data on the training provided.

Small Business Impact

The data indicates that small business participation was not a stated factor in this contract (ss: false, sb: false). This suggests that opportunities for small businesses may have been limited in this procurement.

Oversight & Accountability

The contract's cost-plus incentive fee structure necessitates robust oversight to ensure cost control and performance. The long duration also requires consistent monitoring to ensure the government receives value for its investment.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Cost-plus incentive fee structure.
Lack of specific performance metrics.
Broad service category.
No stated small business participation.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $42.5 million to MINACT, INC. OPERATION OF THE Q. BURDICK 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 $42.5 million.

What is the period of performance?

Start: 2009-06-01. End: 2014-11-30.

What specific training and technical services were provided under this contract, and how were they measured for effectiveness?

The provided data lacks specifics on the exact services rendered under the 'Other Technical and Trade Schools' NAICS code. Effectiveness would typically be measured through participant outcomes like job placement rates, skill acquisition, and program completion. Without these details, a thorough assessment of the contract's effectiveness is not possible from the given information.

How did the 'full and open competition' process ensure the government received the most cost-effective solution for these training services?

While 'full and open competition' is a positive indicator, its effectiveness in ensuring cost-effectiveness depends on the solicitation's structure, the evaluation criteria, and the number and quality of bids received. The data doesn't reveal these details. A competitive process ideally drives down prices and improves service quality, but without further information on the bidding landscape and award rationale, the degree of cost-effectiveness achieved remains unclear.

What is the rationale behind the 'Cost Plus Incentive Fee' (CPIF) contract type for these services, and what are the associated risks?

A CPIF contract is used when costs are difficult to estimate accurately but performance targets can be set. It incentivizes the contractor to meet or exceed targets while sharing cost savings or overruns with the government. The risk is that if targets are poorly defined or incentives are misaligned, costs could escalate beyond initial projections, requiring diligent government oversight to manage.

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: S09F6ND010

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: $44,974,841

Exercised Options: $43,151,436

Current Obligation: $42,502,697

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline