Department of Labor's $58M contract for Job Corps Center operations awarded to Education & Training Resources LLC

Contract Overview

Contract Amount: $57,949,791 ($57.9M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2009-07-01

End Date: 2014-11-30

Contract Duration: 1,978 days

Daily Burn Rate: $29.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE ONEONTA JOB CORPS CENTER

Place of Performance

Location: ONEONTA, OTSEGO County, NEW YORK, 13820

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $57.9 million to EDUCATION & TRAINING RESOURCES LLC for work described as: OPERATION OF THE ONEONTA JOB CORPS CENTER Key points: 1. The contract's value of approximately $58 million over its duration suggests a significant investment in workforce development. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The use of a Cost Plus Incentive Fee (CPIF) contract type suggests a focus on performance-based outcomes. 4. The contract duration of nearly 2,000 days points to a long-term commitment to service delivery. 5. The specific NAICS code (611519) indicates a focus on specialized technical and trade schools. 6. The contract was awarded to a single entity, Education & Training Resources LLC, highlighting their role in this specific service area.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided and the number of students served. However, the total award of nearly $58 million over its term suggests a substantial investment. Without comparable contract data for similar Job Corps centers or detailed cost breakdowns, a precise value-for-money assessment is challenging. The CPIF structure implies that the government aims to incentivize efficient performance, which could lead to better value if targets are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which typically means that after an initial broad solicitation, certain sources might have been excluded based on specific criteria before the final award. This suggests a structured procurement process. The number of bidders is not specified, but the 'full and open' nature implies that multiple entities had the opportunity to compete.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by fostering price discovery and encouraging contractors to offer competitive terms to secure the award.

Public Impact

The primary beneficiaries are students enrolled in the Job Corps program at the Oneonta center, who receive vocational training and support services. The contract facilitates the operation of the Oneonta Job Corps Center, providing essential services for workforce development and career readiness. The geographic impact is focused on New York (ST: NY, SN: NEW YORK), serving the local community and economy. The contract supports the employment of instructors, administrative staff, and support personnel at the Job Corps center, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPIF contract type can lead to cost overruns if incentive targets are not carefully managed or if the base fee is too high.
Lack of specific performance metrics and outcomes makes it difficult to assess the true effectiveness and value delivered.
The long contract duration could lead to complacency or a lack of agility in adapting to changing workforce needs.
Limited information on the specific services and their quality makes it hard to benchmark against other training providers.

Positive Signals

The contract was awarded through full and open competition, suggesting a potentially robust selection process.
The CPIF structure incentivizes the contractor to meet or exceed performance goals, potentially leading to better program outcomes.
The focus on operating a Job Corps center directly addresses critical workforce development needs.
The long-term nature of the contract provides stability for both the students and the operational staff.

Sector Analysis

The contract falls within the Education and Training Services sector, specifically focusing on vocational and technical training. The NAICS code 611519 covers 'Other Technical and Trade Schools.' This sector is crucial for equipping individuals with the skills needed for the modern workforce. Comparable spending benchmarks would involve analyzing other Job Corps center contracts or similar government-funded workforce development programs to assess cost-effectiveness and scope.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no explicit mention of small business set-asides. This suggests that the primary contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed in this summary, but they could potentially exist within the scope of the larger contract, depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures are likely tied to the Cost Plus Incentive Fee (CPIF) structure, where performance against defined metrics influences the final payment. Transparency would depend on the Department of Labor's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Training Grants
Vocational Rehabilitation Services

Risk Flags

Potential for cost overruns due to CPIF structure if not managed effectively.
Lack of detailed performance data makes objective value assessment difficult.
Contract duration may limit flexibility in adapting to evolving training needs.
Limited information on small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $57.9 million to EDUCATION & TRAINING RESOURCES LLC. OPERATION OF THE ONEONTA JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is EDUCATION & TRAINING RESOURCES LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $57.9 million.

What is the period of performance?

Start: 2009-07-01. End: 2014-11-30.

What specific performance metrics were used to determine the incentive fees for Education & Training Resources LLC under this CPIF contract?

The provided data does not specify the exact performance metrics used for the Cost Plus Incentive Fee (CPIF) component of this contract. Typically, CPIF contracts link a portion of the contractor's fee to achieving specific performance targets related to cost, schedule, or technical objectives. For a Job Corps center operation, these metrics could include student enrollment rates, completion rates, job placement success, average starting wages of placed graduates, and student satisfaction surveys. The Department of Labor's contracting officers would have established these metrics in the contract's Statement of Work and evaluation criteria. Without access to the full contract details or performance reports, the precise nature and weighting of these incentives remain unknown.

How does the cost per student for this Oneonta Job Corps Center contract compare to other similar Job Corps centers nationwide?

A direct comparison of cost per student for the Oneonta Job Corps Center contract is not feasible with the provided data alone. The total contract value is approximately $57.9 million over a period of roughly 1,978 days (approximately 5.4 years). To calculate a cost per student, we would need the average number of students served annually or over the contract period, and the total operational costs excluding administrative overhead not directly tied to student services. Job Corps centers vary significantly in size, location, services offered, and student demographics, all of which impact per-student costs. A comprehensive analysis would require accessing historical enrollment data and detailed financial reports for this specific center and comparing them against aggregated data from other centers managed by the Department of Labor.

What is the track record of Education & Training Resources LLC in managing government contracts, particularly in the education and workforce development sector?

Information regarding the specific track record of Education & Training Resources LLC in managing government contracts is not detailed in the provided summary data. To assess their performance, one would need to review their past contract history, including awards, performance evaluations (e.g., CPARS - Contractor Performance Assessment Reporting System), any past disputes or terminations, and their experience with similar large-scale service contracts. Their success in managing other Job Corps centers or comparable workforce development programs would be a key indicator of their capability. A thorough review would involve searching federal procurement databases and performance assessment systems.

What were the primary factors that led to the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type for this contract?

The award type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a multi-stage procurement process. Initially, the solicitation was open to all responsible sources. However, certain potential offerors may have been excluded from the final competition based on specific, pre-defined criteria outlined in the solicitation. These criteria could relate to technical capabilities, past performance, financial stability, or specific certifications required for operating a Job Corps center. The exclusion process is intended to streamline the competition by focusing on a qualified pool of bidders while still maintaining a competitive environment. The exact reasons for excluding specific sources would be detailed in the agency's procurement documentation.

How has federal spending on Job Corps center operations evolved over the years, and where does this contract fit within that trend?

The provided data focuses on a single contract awarded in 2009 and ending in 2014. To understand the evolution of federal spending on Job Corps center operations, a broader analysis of historical appropriations and contract awards for the entire Job Corps program would be necessary. This would involve examining annual budget allocations, the number and value of center operation contracts awarded over time, and trends in per-student funding. This specific $58 million contract represents a significant investment for a single center over its operational period, but its place within the overall federal spending trend would depend on the scale and scope of the Job Corps program during that era and subsequent years.

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

Solicitation ID: DOLJ08RFP00003

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 2422 AIRWAY CT, BOWLING GREEN, KY, 42103

Business Categories: Category Business, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $113,033,693

Exercised Options: $81,887,990

Current Obligation: $57,949,791

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline