Labor Awards $45M Job Corps Center Contract to Horizons Youth Services for 2 Years with Options

Contract Overview

Contract Amount: $45,166,399 ($45.2M)

Contractor: Horizons Youth Services, L.C.

Awarding Agency: Department of Labor

Start Date: 2009-10-01

End Date: 2015-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: AWARD OF CONTRACT FOR OPERATION OF CARL D. PERKINS JOB CORPS CENTER FOR 2 YEAR BASE PERIOD. CONTRACT HAS POTENTIAL OF 3 ADDITIONAL OPTION YEARS.

Place of Performance

Location: PRESTONSBURG, FLOYD County, KENTUCKY, 41653

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $45.2 million to HORIZONS YOUTH SERVICES, L.C. for work described as: AWARD OF CONTRACT FOR OPERATION OF CARL D. PERKINS JOB CORPS CENTER FOR 2 YEAR BASE PERIOD. CONTRACT HAS POTENTIAL OF 3 ADDITIONAL OPTION YEARS. Key points: 1. The contract is for operating a Job Corps Center, a critical workforce development program. 2. Full and open competition was used, suggesting a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee, which can incentivize performance but requires careful monitoring. 4. The award is for a 2-year base period with potential for 3 option years, indicating a medium-term commitment.

Value Assessment

Rating: good

The contract value of $45,166,399 over a potential 5 years averages to approximately $9 million annually. This seems reasonable for operating a Job Corps center, considering the scope of services typically provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. The use of a definitive contract suggests a clear scope of work.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential job training services.

Public Impact

Provides essential job training and career services to disadvantaged youth. Supports local economy in Kentucky through employment and services. Contributes to national workforce development goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts require robust oversight to ensure cost control and performance.
Long-term reliance on a single contractor for essential services can pose risks if performance degrades.
The contract duration, including options, extends over a significant period, requiring sustained monitoring.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
The contract supports a vital federal program focused on youth employment and training.
The base period of 2 years allows for initial performance assessment before exercising options.

Sector Analysis

The contract falls under the 'Other Technical and Trade Schools' category (NAICS 611519). Spending in this sector supports federal workforce development initiatives, aiming to equip individuals with skills for employment.

Small Business Impact

The data indicates the awardee is HORIZONS YOUTH SERVICES, L.C. and that the contract was not set aside for small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this award. Oversight will be crucial, particularly given the Cost Plus Incentive Fee structure, to ensure performance targets are met and costs are managed effectively.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Cost Plus Incentive Fee contract requires diligent oversight.
Potential for cost overruns if incentives are not well-structured.
Reliance on a single entity for a critical program.
Contract duration with options necessitates long-term monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $45.2 million to HORIZONS YOUTH SERVICES, L.C.. AWARD OF CONTRACT FOR OPERATION OF CARL D. PERKINS JOB CORPS CENTER FOR 2 YEAR BASE PERIOD. CONTRACT HAS POTENTIAL OF 3 ADDITIONAL OPTION YEARS.

Who is the contractor on this award?

The obligated recipient is HORIZONS YOUTH SERVICES, L.C..

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 $45.2 million.

What is the period of performance?

Start: 2009-10-01. End: 2015-03-31.

What specific performance metrics are included in the Cost Plus Incentive Fee structure, and how are they measured?

The effectiveness of the Cost Plus Incentive Fee (CPIF) contract hinges on clearly defined performance metrics tied to the Job Corps program's objectives. These metrics likely include participant enrollment, completion rates, job placement success, and post-placement retention. The government's oversight team must rigorously track these indicators and ensure the incentive fee structure appropriately rewards the contractor for exceeding targets while penalizing underperformance, thereby maximizing taxpayer value.

What is the historical performance record of Horizons Youth Services in operating similar federal contracts?

Assessing the historical performance of Horizons Youth Services is crucial for evaluating the risk associated with this award. Past performance data, including any past performance evaluations, contract modifications, or disputes, provides insight into their reliability, quality of service, and ability to manage costs. A review of their track record with similar government contracts, particularly those involving youth development or educational services, would inform the assessment of potential risks and the likelihood of successful contract execution.

How does the annual cost of this contract compare to the operational costs of other Job Corps centers of similar size and scope?

Benchmarking the annual cost of approximately $9 million against similar Job Corps centers is essential for determining value for money. Factors such as geographic location, specific program offerings, and participant demographics can influence costs. A comparative analysis would reveal if this contract represents a fair price for the services rendered or if there are potential areas for cost savings or concerns regarding overpricing, ultimately impacting the efficient use of federal funds.

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: 08-JC-REG2-PERK

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Endless Horizons Inc

Address: 3586 HORIZONS WAY, HARRISONBURG, VA, 22802

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,243,453,599

Exercised Options: $750,483,310

Current Obligation: $45,166,399

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline