Department of Labor's Job Corps contract awarded to Res-Care, Inc. for $36.97M over 6 years

Contract Overview

Contract Amount: $36,974,427 ($37.0M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2009-07-24

End Date: 2015-02-28

Contract Duration: 2,045 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

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: TUCSON, PIMA County, ARIZONA, 85719

State: Arizona Government Spending

Plain-Language Summary

Department of Labor obligated $37.0 million to RES-CARE, 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. Res-Care, Inc. is the sole awardee for this definitive contract. 3. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives. 4. The program aims to improve employment outcomes for young adults.

Value Assessment

Rating: fair

The Cost Plus Incentive Fee (CPIF) contract type can lead to cost overruns if not managed carefully. Benchmarking against similar vocational training programs is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. However, the definitive contract structure suggests a single award, and further details on price discovery are needed.

Taxpayer Impact: Taxpayer funds are used to provide job training, with the ultimate impact on employment and earning potential determining the return on investment.

Public Impact

Provides essential job skills and training to young adults, potentially reducing unemployment. Supports economic mobility for participants by equipping them with in-demand vocational skills. The program's success is tied to the long-term employability and earning capacity of its graduates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for CPIF contract.
Potential for cost overruns if performance incentives are not well-aligned with program goals.
Limited information on specific training outcomes and success rates.

Positive Signals

Addresses a critical need for youth workforce development.
Utilizes a competitive process for contract award.
Focuses on practical, vocational skills for immediate employment.

Sector Analysis

The vocational training sector is crucial for workforce development, bridging the gap between education and employment. Spending benchmarks vary widely based on program scope and duration, but this contract appears to be a significant investment in a single provider.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to assess small business participation.

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, cost control, and achievement of training objectives.

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 transparency in detailed cost breakdowns.
Need for clear performance metrics and robust oversight.
Uncertainty regarding long-term program effectiveness and ROI.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $37.0 million to RES-CARE, 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 RES-CARE, 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 $37.0 million.

What is the period of performance?

Start: 2009-07-24. End: 2015-02-28.

What are the key performance indicators (KPIs) used to measure the success of the Job Corps program under this contract, and how are they linked to the incentive fee structure?

The success of the Job Corps program is typically measured by participant completion rates, job placement rates, and post-placement earnings. The incentive fee structure within a CPIF contract is designed to reward the contractor for achieving or exceeding these predefined performance targets, ensuring alignment between contractor efforts and desired program outcomes.

How does the cost-plus-incentive-fee (CPIF) structure impact the overall cost-effectiveness of this vocational training program compared to fixed-price contracts?

A CPIF contract allows for cost sharing between the government and the contractor, with incentives for meeting or exceeding performance goals. While it can encourage contractor efficiency and quality, it also carries the risk of higher costs if targets are ambitious or poorly defined. Its cost-effectiveness hinges on the clarity of KPIs and the government's ability to manage and monitor performance effectively.

What is the long-term impact of this Job Corps contract on the employment and earning potential of the youth it serves, and how is this impact tracked?

The long-term impact is assessed through follow-up studies tracking participants' employment status, wages, and career progression for several years post-program completion. This data is vital for evaluating the program's effectiveness in achieving its mission of enhancing employability and economic self-sufficiency among young adults.

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: DOLJ09SA00005

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carestream Health, Inc. (UEI: 244882650)

Address: 9901 LINN STATION RD, LOUISVILLE, KY, 40223

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

Financial Breakdown

Contract Ceiling: $65,079,029

Exercised Options: $41,205,306

Current Obligation: $36,974,427

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline