Department of Labor's Job Corps program awarded $46.5M to ODLE MANAGEMENT GROUP, L.L.C. for vocational training

Contract Overview

Contract Amount: $46,452,038 ($46.5M)

Contractor: Odle Management Group, L.L.C.

Awarding Agency: Department of Labor

Start Date: 2010-05-01

End Date: 2015-10-31

Contract Duration: 2,009 days

Daily Burn Rate: $23.1K/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: JOB CORPS IS A VOCATIONAL TRAINING PROGRAM FOR YOUTH BETWEEN THE AGES OF 16 AND 24.

Place of Performance

Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90810

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $46.5 million to ODLE MANAGEMENT GROUP, L.L.C. 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 focuses on vocational training for youth, a critical service for workforce development. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type, Cost Plus Incentive Fee, allows for performance-based adjustments to payment. 4. The duration of the contract spans over five years, indicating a significant commitment. 5. The program targets young adults aged 16-24, addressing a specific demographic need. 6. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and performance metrics. However, the Cost Plus Incentive Fee (CPIF) structure suggests an attempt to align contractor incentives with government objectives, potentially leading to better value if performance targets are met. Comparing it to similar vocational training contracts would require access to more granular data on scope, duration, and outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating a broad solicitation process. While the exact number of bidders is not specified, this approach generally fosters price discovery and allows for a wider range of potential contractors to submit proposals, which can lead to more competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Young adults aged 16-24 benefit from vocational training and career development opportunities. The program aims to equip participants with skills for in-demand occupations. The contract supports workforce development initiatives, potentially impacting local and regional economies. Participants may gain access to employment and further educational pathways. The services delivered are crucial for addressing youth unemployment and underemployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPIF contract type can lead to cost overruns if not closely monitored and managed.
Performance metrics and their impact on incentive fees need rigorous oversight to ensure value for money.
The long duration of the contract requires sustained management attention to adapt to changing labor market needs.

Positive Signals

The use of full and open competition suggests a robust process for selecting the most capable contractor.
The focus on vocational training addresses a clear societal need for skilled labor.
The CPIF structure, if well-implemented, can incentivize contractor performance and efficiency.

Sector Analysis

The vocational training sector is a key component of the broader education and workforce development industry. This contract falls under the 'Other Technical and Trade Schools' category (NAICS 611519). The market for such services is driven by government funding, employer demand for skilled workers, and the need for accessible training pathways for individuals. Comparable spending benchmarks would depend on the scale and specific training modalities offered.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract is not detailed in the provided data. However, large federal contracts often include provisions for small business participation, either through direct awards or subcontracting opportunities. The impact on the small business ecosystem would depend on whether such provisions were included and effectively implemented.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Mechanisms likely include regular performance reviews, financial audits, and adherence to contract terms. Transparency is usually managed through contract award databases and reporting requirements. The Inspector General's office would have jurisdiction for investigating fraud, waste, and abuse.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
YouthBuild Program
Apprenticeship Programs
Federal Job Training Programs

Risk Flags

Contract Type Risk (CPIF)
Performance Monitoring Complexity
Geographic Service Delivery Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $46.5 million to ODLE MANAGEMENT GROUP, L.L.C.. 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 ODLE MANAGEMENT GROUP, L.L.C..

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 $46.5 million.

What is the period of performance?

Start: 2010-05-01. End: 2015-10-31.

What is the historical spending trend for the Job Corps program under ODLE MANAGEMENT GROUP, L.L.C.?

The provided data reflects a single award of $46,452,038 to ODLE MANAGEMENT GROUP, L.L.C. for the Job Corps program, with a start date of 2010-05-01 and an end date of 2015-10-31. This indicates a five-year contract duration. To understand the historical spending trend, one would need to examine prior contracts awarded to this entity or other contractors for the Job Corps program, as well as analyze the annual expenditure against the total award amount for this specific contract. Without access to historical contract databases or detailed financial reports for the Job Corps program over multiple fiscal years, a comprehensive spending trend cannot be established from this single data point.

How does the per-unit cost of training compare to industry benchmarks?

Determining a precise per-unit cost for training under this contract is not feasible with the provided data. The contract value is a total award amount, and the 'unit' of service (e.g., per student trained, per course completed, per certification achieved) is not specified. To conduct a benchmark comparison, detailed cost accounting data from the contractor, including the number of participants served and the specific training outcomes achieved, would be necessary. This would then need to be compared against publicly available data or industry reports on the average cost of similar vocational training programs, considering factors like program intensity, subject matter, and geographic location.

What are the key performance indicators (KPIs) for this contract and how are they measured?

The provided data does not specify the key performance indicators (KPIs) for this Job Corps contract awarded to ODLE MANAGEMENT GROUP, L.L.C. However, typical KPIs for such vocational training programs often include metrics like student enrollment rates, completion rates, job placement rates post-training, starting wages of placed graduates, and employer satisfaction. As this is a Cost Plus Incentive Fee (CPIF) contract, performance against pre-defined targets related to these or similar KPIs would directly influence the final payment to the contractor. The Department of Labor would have established these KPIs and the methodology for measuring and verifying performance.

What is the track record of ODLE MANAGEMENT GROUP, L.L.C. in managing federal contracts, particularly in education or training?

The provided data indicates that ODLE MANAGEMENT GROUP, L.L.C. was awarded this specific $46.5 million contract for the Job Corps program. To assess their overall track record, a broader review of their contract history with federal agencies would be required. This would involve searching federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to ODLE MANAGEMENT GROUP, L.L.C., examining their performance ratings (e.g., Contractor Performance Assessment Reporting System - CPARS), and looking for any instances of contract disputes, terminations, or significant performance issues. Without this broader context, it's difficult to definitively assess their track record beyond this single award.

What is the potential risk associated with the 'Cost Plus Incentive Fee' contract type for this program?

The Cost Plus Incentive Fee (CPIF) contract type carries inherent risks that require careful management. The primary risk is that the contractor may incur costs that exceed initial estimates, although the government only pays for allowable costs. The 'incentive fee' component means the final profit is tied to achieving specific performance targets. If these targets are poorly defined, difficult to achieve, or not rigorously monitored, the government might pay a higher fee than warranted for the actual performance. Conversely, if targets are too easily met, the incentive value is diminished. Effective oversight is crucial to ensure that the incentive structure genuinely drives desired outcomes and that costs remain reasonable relative to performance.

How does the geographic scope (California) influence the delivery and effectiveness of the Job Corps program?

The contract specifies 'CALIFORNIA' as the state (SN), suggesting the primary service delivery area for this award. California's large population, diverse economy, and specific labor market needs likely shape the vocational training offered. The effectiveness of the program can be influenced by factors such as the availability of local job opportunities matching the trained skills, the cost of living impacting student support services, and the specific partnerships established with California-based employers. A statewide focus implies a need for a robust logistical framework to reach participants across various regions within California and tailor training to regional economic demands.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOLJ09SA00009

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10605 N HAYDEN RD STE 110, SCOTTSDALE, AZ, 85260

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $98,673,487

Exercised Options: $70,319,523

Current Obligation: $46,452,038

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline