Department of Labor awards $54.8M contract for Detroit Job Corps Center operations to Alutiiq Education & Training

Contract Overview

Contract Amount: $54,838,946 ($54.8M)

Contractor: Alutiiq Education & Training, LLC

Awarding Agency: Department of Labor

Start Date: 2008-10-01

End Date: 2014-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE DETROIT JOB CORPS CENTER

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48206

State: Michigan Government Spending

Plain-Language Summary

Department of Labor obligated $54.8 million to ALUTIIQ EDUCATION & TRAINING, LLC for work described as: OPERATION OF THE DETROIT JOB CORPS CENTER Key points: 1. The contract value of $54.8M over its period of performance is significant for technical and trade schools. 2. Alutiiq Education & Training, LLC is the sole awardee, indicating a specific capability or prior relationship. 3. The contract type (Cost Plus Incentive Fee) suggests performance incentives and potential for cost overruns. 4. The sector is 'Other Technical and Trade Schools', a niche but important area for workforce development.

Value Assessment

Rating: fair

The contract value of $54.8M for operating a Job Corps center appears substantial. Benchmarking against similar contracts for educational services or facility management would be necessary to determine if this represents a fair price.

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 competition was sought, certain sources were excluded, potentially limiting the pool of bidders and impacting price discovery.

Taxpayer Impact: The cost-plus incentive fee structure means taxpayer funds are directly tied to performance, with potential for increased costs if incentives are met or costs exceed projections.

Public Impact

Job Corps centers provide vocational training and education to young people, impacting workforce development. The operation of this center affects local employment and the economic well-being of participants. The contract's performance directly influences the quality and availability of training services for students.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Cost Plus Incentive Fee contracts can be complex to manage and may exceed initial estimates.
No small business participation noted.

Positive Signals

Focus on vocational training addresses a critical need.
Potential for performance incentives could drive better service delivery.

Sector Analysis

The 'Other Technical and Trade Schools' sector encompasses institutions providing specialized training. Spending in this area is crucial for developing a skilled workforce, but contract values can vary widely based on scope and duration.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). This contract was not set aside for small businesses, and the prime contractor is not identified as a small business.

Oversight & Accountability

The Office of the Assistant Secretary for Administration and Management (OASAM) within the Department of Labor is responsible for this contract. Oversight would focus on ensuring the contractor meets performance standards and manages costs 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

Limited competition
Cost Plus Incentive Fee contract type
No small business participation noted
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $54.8 million to ALUTIIQ EDUCATION & TRAINING, LLC. OPERATION OF THE DETROIT JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is ALUTIIQ EDUCATION & TRAINING, LLC.

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 $54.8 million.

What is the period of performance?

Start: 2008-10-01. End: 2014-03-31.

What specific services are included in the operation of the Detroit Job Corps Center, and how do they align with the contract value to ensure effective workforce development?

The operation of the Detroit Job Corps Center likely includes providing vocational training, academic instruction, career counseling, and support services to eligible youth. The $54.8M contract value over its period suggests a comprehensive program. Effective workforce development hinges on the quality of training, job placement rates, and the long-term success of graduates in the labor market.

Given the 'limited' competition and 'Cost Plus Incentive Fee' structure, what are the primary risks to taxpayer funds and program effectiveness?

The primary risks include potential cost overruns due to the incentive fee structure, where contractor profits increase with performance, potentially driving up overall costs. Limited competition might mean less pressure on the contractor to offer the most competitive pricing. Program effectiveness could be impacted if the focus shifts towards meeting incentive metrics rather than holistic student development or if cost controls are insufficient.

How does the exclusion of sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' impact the potential for innovation and cost savings in this contract?

Excluding sources limits the diversity of approaches and potentially reduces the competitive pressure to innovate or offer the lowest possible price. While there might be justifiable reasons for exclusion (e.g., specific expertise, security), it inherently narrows the field. This can stifle innovative solutions that might have emerged from a broader competitive landscape and potentially lead to higher costs than if a truly open competition had occurred.

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: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corporation

Address: 3909 ARCTIC BLVD STE 400, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,396,354

Exercised Options: $65,396,354

Current Obligation: $54,838,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline