Department of Labor's $46M Denison Job Corps Center contract awarded to Management & Training Corporation

Contract Overview

Contract Amount: $46,047,434 ($46.0M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2009-04-01

End Date: 2014-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE DENISON JOB CORPS CENTER IN DENISON, IOWA

Place of Performance

Location: DENISON, CRAWFORD County, IOWA, 51442

State: Iowa Government Spending

Plain-Language Summary

Department of Labor obligated $46.0 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE DENISON JOB CORPS CENTER IN DENISON, IOWA Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of over five years indicates a significant, long-term commitment. 4. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 5. The contract was awarded as a definitive contract, implying a firm commitment to the scope of work.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and performance metrics. However, the total award amount of over $46 million for a five-year operation of a Job Corps center suggests a substantial investment in workforce development. Comparing this to similar Job Corps center contracts would provide a clearer picture of its cost-effectiveness. The cost-plus-incentive-fee (CPIF) pricing structure is designed to incentivize efficiency, but its ultimate value depends on the achieved performance targets and the contractor's ability to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach is generally favored for maximizing competition and achieving the best value for the government. The number of bidders is not specified, but the use of full and open competition suggests a deliberate effort to solicit a wide range of proposals.

Taxpayer Impact: Full and open competition is intended to drive down costs through market forces, potentially leading to better value for taxpayers by ensuring the government receives competitive pricing.

Public Impact

The primary beneficiaries are the individuals enrolled in the Denison Job Corps Center, who receive vocational training and educational services. The contract delivers essential workforce development services, aiming to equip participants with skills for employment. The geographic impact is focused on Denison, Iowa, and the surrounding region, providing local economic benefits through job training and potential employment opportunities. Workforce implications include the creation of jobs for instructors, administrators, and support staff at the center, as well as the development of a skilled local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if performance incentives are not structured to strictly control expenses.
Ensuring consistent quality of training across the contract duration requires robust oversight.
Dependence on a single contractor for operational management of the center.

Positive Signals

The use of full and open competition suggests a commitment to finding the most capable and cost-effective provider.
The CPIF contract type incentivizes the contractor to perform efficiently and effectively.
The long-term nature of the contract provides stability for program operations and participant services.

Sector Analysis

The Job Corps program falls within the broader education and workforce development sector, specifically focusing on vocational training. This contract supports the operation of a technical and trade school, aligning with NAICS code 611519. The market for operating such centers involves specialized educational service providers. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers or similar government-funded training programs.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Therefore, the direct impact on small businesses through this particular award is not evident from the available information. Further analysis would be needed to determine if small businesses are involved as subcontractors or if the prime contractor has a history of engaging with the small business ecosystem.

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 performance metrics within the cost-plus-incentive-fee structure. Transparency would be facilitated through contract reporting requirements and potential public access to performance data, though specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

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

Risk Flags

Contract Duration
Performance-Based Incentives
Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $46.0 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE DENISON JOB CORPS CENTER IN DENISON, IOWA

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $46.0 million.

What is the period of performance?

Start: 2009-04-01. End: 2014-09-30.

What is the historical spending pattern for the Denison Job Corps Center contract under Management & Training Corporation?

The provided data indicates a single definitive contract awarded to Management & Training Corporation for the operation of the Denison Job Corps Center, with a total value of $46,047,434 and a duration from April 1, 2009, to September 30, 2014. This represents a five-year operational period. Without access to historical contract databases or specific award modifications, it's difficult to ascertain if there were prior contracts for this center with the same or different contractors, or if this represents a continuation of services. The total award amount suggests a significant annual expenditure for the center's operations over that period.

How does the cost-plus-incentive-fee (CPIF) structure of this contract typically influence contractor behavior and cost management?

A Cost-Plus-Incentive-Fee (CPIF) contract is designed to share the risks and rewards between the government and the contractor. The contractor is reimbursed for allowable costs and receives a fee that is adjusted based on performance against pre-determined targets. This structure incentivizes the contractor to control costs and achieve specific performance objectives, as their final profit is directly linked to their success in meeting these goals. For the Denison Job Corps Center, this means Management & Training Corporation would be motivated to operate efficiently and effectively to maximize their fee, while the government benefits from a contractor actively seeking to meet program goals within budget constraints. However, the effectiveness of CPIF relies heavily on the clarity and attainability of the performance targets and the fairness of the cost-sharing formula.

What are the key performance indicators (KPIs) typically associated with Job Corps center operations contracts?

Key performance indicators for Job Corps center operations contracts generally focus on participant outcomes and program efficiency. Common KPIs include student retention rates, completion rates for academic and vocational programs, job placement rates upon graduation, and post-placement earnings. Additionally, indicators related to the quality of training, student satisfaction, safety and security within the center, and adherence to budget and administrative requirements are crucial. The specific KPIs for this contract would be detailed in the contract's Statement of Work and performance work statement, forming the basis for the incentive fee adjustments under the CPIF structure.

What is the typical market size and competitive landscape for operating Job Corps centers?

The market for operating Job Corps centers is specialized, typically involving organizations with extensive experience in workforce development, education, and social services. While the exact market size can fluctuate with federal appropriations and program needs, it represents a significant segment of government contracting in the education and training sector. The competitive landscape often includes a mix of non-profit organizations, for-profit education companies, and management services firms. The 'full and open competition' designation suggests that the Department of Labor sought bids from a broad range of qualified entities, indicating a desire to leverage market competition to secure the best service provider.

What are the potential risks associated with a long-term contract for operating a Job Corps center?

Long-term contracts for operating Job Corps centers carry several potential risks. One primary risk is the potential for contractor complacency or a decline in service quality over time if performance monitoring is not rigorous. Another risk is the inflexibility of the contract to adapt to changing economic conditions or evolving workforce needs without costly modifications. Furthermore, a long-term commitment ties up significant federal resources, which could be a concern if budget priorities shift. Dependence on a single contractor for an extended period can also limit the government's ability to quickly pivot to new approaches or providers if performance issues arise or if a more innovative solution becomes available.

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

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $62,725,031

Exercised Options: $53,825,800

Current Obligation: $46,047,434

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline