Department of Labor awards $84.9M contract for Job Corps Center operations and career transition services to Chugach Government Services

Contract Overview

Contract Amount: $84,883,536 ($84.9M)

Contractor: Chugach Government Services, Inc.

Awarding Agency: Department of Labor

Start Date: 2009-03-31

End Date: 2014-04-30

Contract Duration: 1,856 days

Daily Burn Rate: $45.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF POTOMAC JOB CORPS CENTER WITH CAREER TRANSITION SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $84.9 million to CHUGACH GOVERNMENT SERVICES, INC. for work described as: OPERATION OF POTOMAC JOB CORPS CENTER WITH CAREER TRANSITION SERVICES Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process with specific justifications. 2. The contract type is Cost Plus Incentive Fee (CPIF), which incentivizes the contractor to control costs while meeting performance objectives. 3. Duration of 1856 days suggests a long-term commitment to service delivery. 4. The contract value of $84.9 million over its term represents a significant investment in workforce development. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The contract is located in the District of Columbia, impacting local workforce development initiatives.

Value Assessment

Rating: fair

The contract value of $84.9 million over approximately five years averages to about $17 million annually. Benchmarking this against similar Job Corps center operations requires detailed cost breakdowns and performance metrics, which are not fully available in the provided data. The CPIF contract type suggests that cost control is a shared responsibility, but the ultimate value for money depends on the incentive structure and achieved performance outcomes. Without specific cost-per-student or cost-per-placement data, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the competition was intended to be open, certain sources were excluded, likely due to specific requirements or prior performance. The presence of 4 bids suggests a moderate level of competition. The exclusion of sources may limit the breadth of competition and potentially impact price discovery compared to a truly unrestricted full and open competition.

Taxpayer Impact: While the competition was not entirely unrestricted, the inclusion of multiple bidders likely provided some level of price discipline for taxpayers. The specific reasons for excluding certain sources would be critical to understanding if the competition was as robust as possible.

Public Impact

The primary beneficiaries are individuals seeking vocational training and career transition services through the Job Corps program. Services delivered include the operation of a Job Corps center and specialized career transition support. The geographic impact is concentrated in the District of Columbia, providing local training and employment opportunities. Workforce implications include the creation of jobs for instructors, support staff, and administrative personnel at the center, as well as the development of a skilled workforce for local industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to ensure maximum taxpayer value.
The CPIF contract type requires careful monitoring of performance metrics and cost drivers to ensure effectiveness.
The long contract duration (1856 days) necessitates robust oversight to prevent complacency and ensure ongoing service quality.

Positive Signals

Awarded through a competitive process, even with exclusions, suggests a structured procurement approach.
The CPIF contract structure aims to align contractor incentives with government objectives, potentially leading to better cost management.
The focus on Job Corps operations and career transition services directly addresses critical workforce development needs.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical education services. The Job Corps program is a significant federal initiative aimed at providing disadvantaged youth with the skills and support needed to secure employment. The market for operating such centers involves specialized educational institutions and government contractors with expertise in workforce development. Comparable spending benchmarks would involve analyzing the operational costs and outcomes of other Job Corps centers nationwide.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the prime contract was awarded to a large business. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Chugach Government Services, Inc. actively seeks small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. As a Cost Plus Incentive Fee contract, performance metrics and cost reporting would be subject to regular review. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Labor would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Competition Level
Contract Type Justification
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $84.9 million to CHUGACH GOVERNMENT SERVICES, INC.. OPERATION OF POTOMAC JOB CORPS CENTER WITH CAREER TRANSITION SERVICES

Who is the contractor on this award?

The obligated recipient is CHUGACH GOVERNMENT SERVICES, 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 $84.9 million.

What is the period of performance?

Start: 2009-03-31. End: 2014-04-30.

What specific services are included under 'OPERATION OF POTOMAC JOB CORPS CENTER WITH CAREER TRANSITION SERVICES'?

The 'OPERATION OF POTOMAC JOB CORPS CENTER WITH CAREER TRANSITION SERVICES' contract encompasses the day-to-day management and operation of a Job Corps center. This typically includes providing vocational training in various trades, academic education (GED/high school diploma attainment), career counseling, job placement assistance, and support services such as housing, meals, and transportation for eligible students. Career transition services specifically focus on helping graduates secure and retain employment, often involving post-placement follow-up and additional support.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact cost and competition?

This procurement method indicates that the agency initially intended a full and open competition but later excluded certain sources. This exclusion could be based on factors like past performance, specific technical capabilities, or national security concerns. While it allows for a competitive process, the exclusion of potential bidders might limit the overall pool of offerors, potentially reducing the intensity of price competition compared to a truly unrestricted full and open competition. The justification for exclusion is critical to understanding if it served the government's best interest without unduly restricting competition.

What are the implications of a Cost Plus Incentive Fee (CPIF) contract type for this service?

A Cost Plus Incentive Fee (CPIF) contract means the contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance against pre-determined targets. For operating a Job Corps center, this could involve incentives tied to student graduation rates, job placement success, cost savings, or adherence to training schedules. This contract type aims to motivate the contractor to achieve specific performance goals while managing costs effectively, sharing the risk and reward between the government and the contractor.

What is the historical spending pattern for operating the Potomac Job Corps Center?

The provided data reflects a single contract award of $84.9 million from March 31, 2009, to April 30, 2014. To understand historical spending patterns, one would need to examine prior contracts for the operation of this specific center, potentially including contracts awarded before 2009 and any subsequent contracts awarded after 2014. Analyzing these past awards would reveal trends in contract values, durations, and awarded contractors, providing context for the current contract's scale and duration.

How does the contractor, Chugach Government Services, Inc., perform on similar federal contracts?

Assessing Chugach Government Services, Inc.'s performance on similar federal contracts would require accessing detailed performance evaluations and past performance reviews available in federal procurement databases. Information such as contractor rating scores, any past disputes or contract terminations, and successful completion of prior large-scale service contracts would be crucial. Without access to these specific performance records, it is difficult to definitively assess their track record for operating complex service contracts like Job Corps centers.

What is the typical cost per student or per placement for Job Corps centers, and how does this contract compare?

The average cost per student or per placement for Job Corps centers can vary significantly based on location, program intensity, and support services provided. General estimates often place the annual cost per student in the range of $20,000 to $30,000. For this $84.9 million contract over approximately 5 years, serving potentially hundreds of students annually, the cost per student would need to be calculated based on enrollment numbers and outcomes. A detailed analysis would require specific enrollment data and performance metrics from the Potomac Job Corps Center to benchmark effectively against national averages or similar centers.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 3800 CENTERPOINT DR STE 601, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,003,811,910

Exercised Options: $1,278,419,368

Current Obligation: $84,883,536

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline