Department of Labor awards $40M+ contract to Education & Training Resources LLC for Hartford Job Corps Center operations

Contract Overview

Contract Amount: $40,081,563 ($40.1M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2009-10-01

End Date: 2015-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $20.0K/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 THE HARTFORD JOB CORPS CENTER

Place of Performance

Location: BOWLING GREEN, WARREN County, KENTUCKY, 42103

State: Kentucky Government Spending

Plain-Language Summary

Department of Labor obligated $40.1 million to EDUCATION & TRAINING RESOURCES LLC for work described as: OPERATION OF THE HARTFORD JOB CORPS CENTER Key points: 1. Contract awarded to Education & Training Resources LLC for operating the Hartford Job Corps Center. 2. The contract value is over $40 million, spanning from 2009 to 2015. 3. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for excluding some sources. 4. The sector is 'Other Technical and Trade Schools', indicating a focus on vocational training. 5. The contract type is 'Cost Plus Incentive Fee', which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract value of over $40 million for operating a Job Corps center over six years appears substantial. Benchmarking against similar contracts for vocational training centers would be necessary to determine if the pricing is competitive.

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'. While this indicates competition, the exclusion of sources warrants further investigation to understand the rationale and its potential impact on price discovery.

Taxpayer Impact: Taxpayer funds are being used to operate the Job Corps center, providing vocational training. The effectiveness and efficiency of this operation will determine the ultimate value for taxpayers.

Public Impact

Provides vocational training and job placement services to individuals, impacting workforce development. Operates a key facility for the Department of Labor's employment and training initiatives. The contract's duration and value suggest a significant commitment to this program. Potential impact on local employment and the economy through training and job placement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can incentivize higher costs.
Exclusion of sources in competition needs clarification.
Contract duration is long, potentially limiting flexibility.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Supports a critical government program for workforce development.

Sector Analysis

The sector involves vocational training and technical education, crucial for workforce development. Spending benchmarks in this sector can vary widely based on the scope and scale of the training programs offered.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The 'Department of Labor' and 'Employment and Training Administration' are the contracting agencies. Oversight would focus on the contractor's performance in delivering training, job placement, and adherence to cost controls.

Related Government Programs

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

Risk Flags

Cost Plus Incentive Fee contract type can lead to higher costs.
Exclusion of sources in the competitive process requires scrutiny.
Long contract duration may reduce flexibility and market responsiveness.
Lack of small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $40.1 million to EDUCATION & TRAINING RESOURCES LLC. OPERATION OF THE HARTFORD 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 $40.1 million.

What is the period of performance?

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

What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion impact the final contract price?

The justification for excluding sources is critical to understanding the competitive landscape. If specific capabilities or past performance were required, excluding sources might be valid. However, if the exclusion was arbitrary, it could have limited competition and potentially led to a higher price than a truly open competition might have yielded. Further documentation is needed to assess the impact on price discovery and taxpayer value.

How does the cost-plus-incentive-fee (CPIF) structure for this contract align with industry best practices for managing operational costs in vocational training centers, and what were the achieved inc

CPIF contracts aim to incentivize contractor performance by linking a portion of the fee to achieving specific cost and performance targets. For vocational training centers, effective CPIF structures would incentivize not only cost efficiency but also key outcomes like student completion rates and job placement success. Without details on the specific incentives and achieved outcomes, it's difficult to assess if this structure truly maximized value for taxpayers or encouraged excessive spending.

What were the key performance metrics for the Hartford Job Corps Center under this contract, and how effectively did Education & Training Resources LLC meet these metrics over the contract period?

Key performance metrics for a Job Corps center typically include student enrollment, retention, graduation rates, and post-graduation employment success. Evaluating the contractor's performance against these metrics is essential to determine the effectiveness of the training program and the overall value delivered to students and taxpayers. A review of performance reports and outcome data would be necessary to assess the contractor's effectiveness.

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: DOLJ08RFP00004

Offers Received: 4

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $98,213,268

Exercised Options: $72,888,913

Current Obligation: $40,081,563

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline