Labor Dept. awards $49.6M contract to MINACT, INC for Gerald R. Ford Job Corps Center operations
Contract Overview
Contract Amount: $49,596,675 ($49.6M)
Contractor: Minact, Inc
Awarding Agency: Department of Labor
Start Date: 2009-06-01
End Date: 2014-11-30
Contract Duration: 2,008 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: OPERATION OF THE GERALD R. FORD JOB CORPS CENTER IN GRAND RAPIDS, MICHIGAN
Place of Performance
Location: GRAND RAPIDS, KENT County, MICHIGAN, 49507
State: Michigan Government Spending
Plain-Language Summary
Department of Labor obligated $49.6 million to MINACT, INC for work described as: OPERATION OF THE GERALD R. FORD JOB CORPS CENTER IN GRAND RAPIDS, MICHIGAN Key points: 1. Contract value of $49.6M over 5 years. 2. Full and open competition was utilized. 3. Cost Plus Incentive Fee contract type. 4. Focus on vocational training and employment services.
Value Assessment
Rating: fair
The contract value of $49.6M for 5 years suggests a significant investment in job training. Benchmarking against similar Job Corps center operations would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the Cost Plus Incentive Fee structure requires careful monitoring to ensure cost efficiency.
Taxpayer Impact: Taxpayer funds are allocated to vocational training, aiming to improve workforce skills and reduce unemployment, which can have long-term economic benefits.
Public Impact
Supports workforce development and training for underserved populations. Provides essential skills for entry-level jobs in various trades. Contributes to the local economy through job creation and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type can lead to cost overruns if not managed tightly.
- Lack of specific performance metrics in provided data.
- Potential for contractor to prioritize profit over service quality.
Positive Signals
- Full and open competition promotes fair pricing.
- Focus on job training addresses critical workforce needs.
- Contract duration allows for program stability.
Sector Analysis
This contract falls within the 'Other Technical and Trade Schools' sector, specifically focused on vocational training and employment services. Spending in this area is crucial for addressing skills gaps and supporting economic mobility.
Small Business Impact
The data indicates that small businesses were not a primary focus for this specific contract award, as the prime contractor is MINACT, INC. Further analysis would be needed to determine subcontracting opportunities.
Oversight & Accountability
The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight is crucial to ensure program effectiveness and responsible use of funds.
Related Government Programs
- Other Technical and Trade Schools
- Department of Labor Contracting
- Employment and Training Administration Programs
Risk Flags
- Potential for cost overruns due to CPIF structure.
- Lack of detailed performance metrics in provided data.
- Need to verify contractor's past performance.
- Ensuring equitable access and quality of training for all participants.
Tags
other-technical-and-trade-schools, department-of-labor, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $49.6 million to MINACT, INC. OPERATION OF THE GERALD R. FORD JOB CORPS CENTER IN GRAND RAPIDS, MICHIGAN
Who is the contractor on this award?
The obligated recipient is MINACT, INC.
Which agency awarded this contract?
Awarding agency: Department of Labor (Employment and Training Administration).
What is the total obligated amount?
The obligated amount is $49.6 million.
What is the period of performance?
Start: 2009-06-01. End: 2014-11-30.
What are the key performance indicators (KPIs) for this contract and how are they measured?
Key performance indicators would likely include student enrollment rates, completion rates, job placement rates, and post-placement wages. These are typically measured through regular reporting by the contractor and verified by the agency. The effectiveness of the program hinges on achieving positive outcomes in these areas, demonstrating value for taxpayer investment.
What is the historical performance of MINACT, INC with similar government contracts?
Assessing MINACT, INC's past performance on similar government contracts, particularly those involving job training or educational services, is crucial. A review of past contract awards, performance evaluations, and any documented issues would provide insight into their reliability, efficiency, and ability to meet contractual obligations and quality standards.
How does the cost structure of this Cost Plus Incentive Fee contract compare to fixed-price contracts for similar services?
Cost Plus Incentive Fee contracts offer flexibility but can be more expensive than fixed-price contracts if costs escalate. The incentive fee structure aims to align contractor and government interests. A comparison with fixed-price contracts for comparable job corps operations would reveal potential cost savings or risks associated with this contract type.
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
Solicitation ID: DOLJ09RA00025
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 5220 KEELE ST, JACKSON, MS, 39206
Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $222,143,815
Exercised Options: $207,778,789
Current Obligation: $49,596,675
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-06-01
Current End Date: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2020-04-24
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