Department of Labor's $45.4M contract for Iroquois Job Corps Center operations awarded to Education & Training Resources LLC

Contract Overview

Contract Amount: $45,390,583 ($45.4M)

Contractor: Education & Training Resources LLC

Awarding Agency: Department of Labor

Start Date: 2010-02-01

End Date: 2015-01-31

Contract Duration: 1,825 days

Daily Burn Rate: $24.9K/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 IROQUOIS JOB CORPS CENTER

Place of Performance

Location: MEDINA, ORLEANS County, NEW YORK, 14103

State: New York Government Spending

Plain-Language Summary

Department of Labor obligated $45.4 million to EDUCATION & TRAINING RESOURCES LLC for work described as: OPERATION OF THE IROQUOIS JOB CORPS CENTER Key points: 1. The contract value of $45.4 million over its duration represents a significant investment in workforce development. 2. The use of a Cost Plus Incentive Fee (CPIF) contract type suggests a focus on performance-based outcomes. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though with specific exclusions. 4. The contract duration of 1825 days (5 years) allows for sustained program delivery and impact. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The award to a single contractor, Education & Training Resources LLC, highlights the need for specialized expertise in this area.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the services provided and the number of students served. However, the total award of $45.4 million over five years averages to approximately $9.08 million annually. This figure needs to be compared against the operational costs of similar Job Corps centers nationwide to determine if it represents good value for money. The CPIF structure implies that the contractor's fee is adjusted based on achieving certain performance targets, which can incentivize efficiency and effectiveness, but also introduces complexity in cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be broad, certain sources or types of sources were excluded from the outset. The specific reasons for these exclusions are not detailed here but could relate to specialized capabilities, past performance, or other pre-qualification criteria. The number of bidders is not specified, but the limited nature of the competition might suggest fewer than a fully open process, potentially impacting price discovery.

Taxpayer Impact: The limited competition may mean that taxpayers did not benefit from the lowest possible price that could have been achieved through a completely open bidding process. However, if the exclusions were justified by specific requirements, the resulting contract might offer better value through specialized expertise.

Public Impact

The primary beneficiaries are the individuals enrolled in the Iroquois Job Corps Center, who receive vocational training and support services. The contract delivers essential workforce development services, aiming to equip participants with skills for employment. The geographic impact is focused on New York, specifically the area served by the Iroquois Job Corps Center. Workforce implications include the creation and maintenance of jobs for the staff operating the center and for the graduates entering the labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'EXCLUSION OF SOURCES' in the competition type warrants further investigation to ensure fairness and optimal pricing.
Lack of specific performance metrics and outcomes makes it difficult to fully assess the contractor's value for money.
The CPIF contract type, while incentivizing, can lead to cost overruns if not managed rigorously.

Positive Signals

The contract duration of five years provides stability for program operations and participant services.
The CPIF structure, if well-managed, can drive performance and efficiency in delivering training.
The focus on Job Corps centers addresses critical needs in youth employment and skills development.

Sector Analysis

The workforce development and vocational training sector is crucial for addressing skills gaps and promoting economic mobility. This contract falls under the broader education and training services industry, specifically focusing on technical and trade schools. The market for operating such centers is often characterized by specialized providers with demonstrated experience in managing educational programs, student support, and career placement. Benchmarking against other Job Corps center contracts would provide a clearer picture of the market rates and competitive landscape.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor is likely a larger entity. There is no information on subcontracting plans, which makes it difficult to assess the potential impact on the small business ecosystem. Future analysis should investigate subcontracting opportunities to ensure small businesses can participate in the delivery of these services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Employment and Training Administration. Mechanisms likely include regular reporting requirements from the contractor, performance reviews, and financial audits. The CPIF structure inherently involves oversight to track performance against incentive targets. Transparency would be enhanced by public reporting of key performance indicators and contract financials. The Inspector General's office within the Department of Labor would have jurisdiction for investigating fraud, waste, and abuse.

Related Government Programs

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

Risk Flags

Limited competition may impact price discovery.
CPIF contract requires rigorous performance monitoring.
Exclusion of sources needs justification.
Small business participation not explicitly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $45.4 million to EDUCATION & TRAINING RESOURCES LLC. OPERATION OF THE IROQUOIS 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 $45.4 million.

What is the period of performance?

Start: 2010-02-01. End: 2015-01-31.

What is the track record of Education & Training Resources LLC in managing Job Corps centers or similar large-scale training programs?

A thorough review of Education & Training Resources LLC's past performance is essential. This would involve examining their history with federal contracts, specifically those related to operating Job Corps centers or similar workforce development initiatives. Key areas to investigate include their success in meeting performance metrics, student placement rates, graduation rates, and overall program effectiveness. Analyzing any past contract disputes, terminations, or negative audit findings would also be critical. Understanding their experience in managing budgets, staff, and facilities for similar programs will provide insight into their capability to successfully execute this $45.4 million contract.

How does the cost structure of this contract compare to other Job Corps center operations?

To assess the value for money, the cost structure of this $45.4 million contract needs to be benchmarked against similar Job Corps center operations. This involves comparing the annual operating costs, cost per student, and cost per successful placement. The CPIF (Cost Plus Incentive Fee) nature of this contract adds complexity, as the final fee is contingent on performance. A detailed analysis would require access to the contractor's proposed budget, the government's cost estimates, and the specific performance metrics tied to the incentive fees. Comparing these elements to data from other centers, adjusted for regional economic differences and program scope, is crucial for determining if the pricing is competitive and represents good value.

What are the specific performance metrics and incentive targets associated with the CPIF contract type?

The Cost Plus Incentive Fee (CPIF) contract type implies that the contractor's profit is directly tied to achieving specific performance goals. For this contract, understanding these metrics is vital for assessing contractor accountability and potential value. These metrics could include, but are not limited to, student enrollment and retention rates, graduation rates, job placement rates in relevant fields, starting wages of placed graduates, and employer satisfaction. The incentive structure would define how deviations from target performance affect the contractor's fee. Without knowing these specific targets and the associated fee adjustments, it is difficult to fully evaluate the effectiveness of the incentive mechanism and the contractor's motivation to excel.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, specific entities or types of entities were deliberately excluded. Understanding the rationale behind these exclusions is important for assessing the integrity and competitiveness of the procurement process. Potential reasons could include requirements for highly specialized technical expertise, unique past performance records, specific security clearances, or pre-qualification criteria that only a limited number of firms could meet. If the exclusions were not well-justified or were overly restrictive, it could have limited competition and potentially led to a higher contract price for taxpayers.

What is the anticipated impact of this contract on local employment and the regional economy in New York?

This contract for the operation of the Iroquois Job Corps Center is expected to have a positive impact on the local economy in New York. Firstly, it will directly create and sustain jobs for the center's staff, including instructors, administrators, support personnel, and maintenance crews. Secondly, by providing vocational training and job placement services to participants, the contract aims to enhance the skills of the local workforce, making them more competitive in the job market. This can lead to increased employment rates, higher earning potential for graduates, and a boost to local businesses that benefit from a more skilled labor pool. The success of the Job Corps program in placing graduates into local jobs is a key indicator of its economic contribution.

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: DOLJ08RFP00006

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

Financial Breakdown

Contract Ceiling: $82,311,849

Exercised Options: $59,182,693

Current Obligation: $45,390,583

Actual Outlays: $89,804

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline