Department of Labor's $72M Job Corps contract awarded to Career Systems Development Corporation for vocational training

Contract Overview

Contract Amount: $71,976,002 ($72.0M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2010-12-29

End Date: 2015-12-31

Contract Duration: 1,828 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

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 JOSE, SANTA CLARA County, CALIFORNIA, 95127

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $72.0 million to CAREER SYSTEMS DEVELOPMENT CORPORATION 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's value of $71.98 million over five years suggests a significant investment in youth vocational training. 2. The award to Career Systems Development Corporation indicates a focus on established providers for this critical service. 3. The definitive contract type with a Cost Plus Incentive Fee structure implies shared risk and performance-based incentives. 4. The duration of the contract (over 1800 days) points to a long-term commitment to the Job Corps program. 5. The absence of small business set-aside flags suggests the primary focus was on capability rather than specific small business utilization. 6. The contract's geographic scope is California, indicating a regional focus for this particular award.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the number of students served and the specific outcomes achieved. However, a $72 million investment over five years for vocational training for youth is substantial. Comparing this to other similar large-scale youth training programs would provide better context for value for money. The Cost Plus Incentive Fee (CPIF) structure suggests an attempt to align contractor performance with government objectives, which can be a positive indicator if well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bidders suggests a reasonably competitive environment for this type of service. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Young individuals aged 16-24 in California benefit from vocational training and career development services. The contract supports the delivery of essential job skills training, leading to potential employment opportunities. The program aims to improve the employability and earning potential of disadvantaged youth. Workforce implications include the creation of jobs for instructors, administrators, and support staff within the training centers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the incentive fee structure is not tightly managed.
Ensuring consistent quality of training across all program sites within California.
Measuring long-term employment success and wage growth for program graduates.
Adapting training curricula to meet evolving labor market demands.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The Cost Plus Incentive Fee structure incentivizes contractor performance.
Long contract duration indicates a stable, long-term commitment to youth training.
Focus on vocational training addresses critical workforce development needs.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, specifically under the North American Industry Classification System (NAICS) code 611519. This sector encompasses institutions primarily engaged in providing vocational or technical training and skills development. The federal government, through the Department of Labor, is a significant purchaser of such services to address workforce development needs, particularly for at-risk youth. Comparable spending benchmarks would involve analyzing other large-scale youth training initiatives funded by federal agencies.

Small Business Impact

The contract was not specifically set aside for small businesses, and the 'sb' field is false. This suggests that the primary evaluation criteria focused on the overall capability and capacity of the bidders to deliver the required services. While there is no explicit small business set-aside, the prime contractor may engage small businesses as subcontractors. The impact on the small business ecosystem would depend on the subcontracting opportunities created by Career Systems Development Corporation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. Accountability measures are likely embedded within the Cost Plus Incentive Fee (CPIF) structure, linking contractor payment to performance outcomes. Transparency would be facilitated through contract reporting requirements and potentially public access to aggregated program data. The Inspector General of the Department of Labor would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) programs
YouthBuild Program
Apprenticeship Programs
Adult Education and Literacy Programs

Risk Flags

Potential for performance drift over the contract's long duration.
Ensuring training relevance to current and future labor market demands.
Adequate oversight to manage CPIF incentives effectively.
Measuring long-term success beyond initial job placement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $72.0 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. 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 CAREER SYSTEMS DEVELOPMENT 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 $72.0 million.

What is the period of performance?

Start: 2010-12-29. End: 2015-12-31.

What is the track record of Career Systems Development Corporation in managing federal contracts, particularly those related to youth training?

Information regarding the specific track record of Career Systems Development Corporation in managing federal contracts, especially those focused on youth training, is not directly provided in the abbreviated data. A comprehensive analysis would require examining past performance evaluations, contract history, and any documented successes or failures in similar roles. Federal procurement databases and agency performance reports would be the primary sources for this information. Understanding their experience with Cost Plus Incentive Fee contracts and their ability to meet performance metrics is crucial for assessing future performance.

How does the cost per student for this Job Corps contract compare to similar vocational training programs funded by the federal government?

The provided data does not include a direct cost per student metric. To perform this comparison, one would need to know the total number of students served by this contract over its duration and the total cost incurred. This information would then be divided by the total cost to derive a per-student cost. This figure would then be benchmarked against similar programs administered by the Department of Labor or other federal agencies, such as those funded under the Workforce Innovation and Opportunity Act (WIOA) or other youth employment initiatives. Variations in program intensity, services offered (e.g., housing, stipends), and geographic location can significantly influence per-student costs.

What are the key performance indicators (KPIs) used to assess the success of this Job Corps contract under the Cost Plus Incentive Fee (CPIF) structure?

The specific Key Performance Indicators (KPIs) for this Cost Plus Incentive Fee (CPIF) contract are not detailed in the provided data. However, for a program like Job Corps, typical KPIs would likely include metrics related to student enrollment and retention, completion rates of vocational training programs, successful job placement rates post-graduation, starting wages of placed graduates, and potentially employer satisfaction with the skills of program completers. The CPIF structure implies that the contractor's fee is adjusted based on achieving or exceeding these predefined performance targets, incentivizing them to focus on delivering high-quality outcomes.

What is the historical spending trend for the Job Corps program, and how does this contract fit into that pattern?

The provided data only includes details for a single contract ($71.98 million from 2010-2015). To understand the historical spending trend for the Job Corps program, one would need to analyze aggregate federal budget data and contract awards for Job Corps over multiple fiscal years. This would involve looking at the total appropriations for the program and the number and value of contracts awarded annually. This specific contract represents a significant portion of the program's funding during its performance period, suggesting it was a major component of the Job Corps' operational capacity in California during those years. A broader analysis would reveal if overall spending has increased, decreased, or remained stable.

What are the potential risks associated with a long-term, high-value contract for vocational training, and how are they mitigated?

Potential risks for a long-term, high-value vocational training contract include: contractor performance degradation over time, changes in labor market demand rendering training obsolete, cost overruns, and potential for fraud or mismanagement. Mitigation strategies typically involve robust contract oversight by the awarding agency (Department of Labor), clearly defined performance metrics tied to incentives (as seen with the CPIF structure), regular performance reviews, audits by the Inspector General, and flexibility in contract modifications to adapt to changing needs. The full and open competition at the outset also helps mitigate risks by selecting a capable contractor.

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: DOLJ09SA00011

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $128,574,555

Exercised Options: $83,734,512

Current Obligation: $71,976,002

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline