Department of Labor's Job Corps contract awarded to Adams and Associates Inc. for $91.8M

Contract Overview

Contract Amount: $91,860,885 ($91.9M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2009-05-01

End Date: 2014-11-30

Contract Duration: 2,039 days

Daily Burn Rate: $45.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24.

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94130

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $91.9 million to ADAMS AND ASSOCIATES INC for work described as: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24. Key points: 1. The contract supports vocational training for youth aged 16-24. 2. Competition method was 'Full and Open', suggesting broad market engagement. 3. The contract type is 'Cost Plus Incentive Fee', which can incentivize performance but also carries cost risk. 4. The sector is 'Other Technical and Trade Schools', a niche but important area for workforce development.

Value Assessment

Rating: fair

The contract's Cost Plus Incentive Fee structure requires careful monitoring to ensure costs remain reasonable and performance targets are met. Benchmarking against similar vocational training programs would provide better insight into value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition' method indicates a robust bidding process, likely leading to competitive pricing. However, the 'Cost Plus Incentive Fee' structure means the final price could fluctuate based on performance.

Taxpayer Impact: Taxpayer funds are used for youth vocational training, aiming to improve employability and future earnings, which can have long-term economic benefits.

Public Impact

Provides essential job skills training to young adults, potentially reducing unemployment. The program's success hinges on effective curriculum and job placement rates. Geographic focus on California may limit broader national impact unless replicated.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee structure can lead to cost overruns if not managed tightly.
Performance metrics and incentive alignment need rigorous oversight.
Long-term effectiveness depends on job placement success and participant outcomes.

Positive Signals

Full and open competition promotes market fairness.
Focus on youth development addresses a critical demographic need.
Contract duration of over 5 years suggests a stable program.

Sector Analysis

The 'Other Technical and Trade Schools' sector is vital for equipping individuals with specific skills for in-demand jobs. Spending benchmarks are difficult to establish without more specific program details, but vocational training is a significant area of government investment.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this contract. Oversight should focus on ensuring program effectiveness, cost control, and adherence to performance incentives.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost overruns due to CPIF structure.
Lack of specific performance metrics makes value assessment difficult.
Limited information on program outcomes and long-term impact.
Geographic concentration in California may not reflect national needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $91.9 million to ADAMS AND ASSOCIATES INC. JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24.

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES INC.

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 $91.9 million.

What is the period of performance?

Start: 2009-05-01. End: 2014-11-30.

What is the average cost per participant for this Job Corps program, and how does it compare to similar programs nationally?

The provided data does not include the number of participants or the total obligated amount for the entire contract period, making it impossible to calculate a per-participant cost. Benchmarking against similar vocational training programs would require access to data on program scale, scope, and outcomes across different providers.

What are the key performance indicators (KPIs) for the incentive fee, and how are they measured to ensure taxpayer value?

The specific KPIs for the incentive fee are not detailed in the provided data. Effective oversight would require clear, measurable, achievable, relevant, and time-bound (SMART) goals related to participant completion rates, job placement success, and post-placement earnings. Regular audits and performance reviews are crucial for validating these metrics.

How does the 'Cost Plus Incentive Fee' structure balance cost control with program quality and participant outcomes?

The CPIF structure aims to incentivize the contractor to perform well by offering additional profit for meeting or exceeding targets, while also sharing cost savings. However, it necessitates robust government oversight to prevent cost inflation and ensure that the focus remains on delivering high-quality training and successful job placements for participants, rather than solely on maximizing profit.

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: DOLJ09SA00004

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $150,809,508

Exercised Options: $97,530,810

Current Obligation: $91,860,885

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline