Department of Labor awards $47.5M contract for Brunswick Job Corps Center operations to Management & Training Corporation

Contract Overview

Contract Amount: $47,511,353 ($47.5M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2009-02-01

End Date: 2014-07-31

Contract Duration: 2,006 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE BRUNSWICK JOB CORPS CENTER.

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31525

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $47.5 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE BRUNSWICK JOB CORPS CENTER. Key points: 1. Contract awarded through full and open competition, suggesting a robust market for job corps center management. 2. The contract type, Cost Plus Incentive Fee, indicates a performance-based structure with potential for cost savings. 3. The duration of the contract (over 5 years) suggests a stable, long-term need for these services. 4. The award to a single contractor implies a competitive bidding process that resulted in a preferred vendor. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The contract's value is significant within the context of vocational training and workforce development programs.

Value Assessment

Rating: good

The contract value of $47.5 million over approximately five years for operating a Job Corps center appears reasonable when benchmarked against similar contracts for educational and training facility management. While specific per-unit cost data is not provided, the competitive nature of the award suggests that the pricing was deemed acceptable by the Department of Labor. The Cost Plus Incentive Fee structure allows for performance-based adjustments, which can lead to better value if the contractor meets or exceeds targets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of four bidders (no) suggests a healthy level of competition for this type of service. The competitive process allows the agency to select the offer that provides the best value, considering both cost and technical factors. The outcome of this competition is a definitive contract awarded to Management & Training Corporation.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective and high-quality service for operating the Brunswick Job Corps Center. Competition helps drive down prices and encourages innovation among potential bidders.

Public Impact

The primary beneficiaries are the students enrolled in the Brunswick Job Corps Center, who receive vocational training and support services. The contract ensures the continued operation of essential workforce development programs, equipping individuals with job skills. The geographic impact is focused on the Brunswick, Georgia area, providing local employment opportunities and economic stimulus. The contract supports the workforce of the contractor, Management & Training Corporation, and potentially local subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not managed tightly.
Reliance on a single contractor for a critical workforce development function could pose a risk if performance falters.
The long-term nature of the contract may limit opportunities for newer, potentially more innovative providers to enter the market.

Positive Signals

Awarded through full and open competition, indicating a competitive market and a thorough evaluation process.
The Cost Plus Incentive Fee structure incentivizes contractor performance and cost efficiency.
The contract's duration suggests a stable and reliable service delivery model for the Job Corps program.
The contractor, Management & Training Corporation, likely has a track record in managing similar facilities.

Sector Analysis

The contract falls within the Education and Training sector, specifically focusing on vocational and technical education services provided by Job Corps centers. These centers are crucial for preparing young adults for careers. The market for managing such centers involves specialized firms with expertise in education, training, facility management, and student support. Comparable spending benchmarks would involve looking at other Job Corps center contracts or large-scale vocational training program management contracts across federal agencies.

Small Business Impact

The data indicates that small business participation (sb) was not a specific set-aside for this contract (ss: false, sb: false). While the primary contract was not set aside for small businesses, the prime contractor, Management & Training Corporation, may engage small businesses as subcontractors for various services. The impact on the small business ecosystem would depend on the extent of subcontracting opportunities created by this large contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). Accountability measures are built into the Cost Plus Incentive Fee structure, rewarding performance and cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Labor Job Corps Program
Workforce Innovation and Opportunity Act Programs
Federal Vocational Training Contracts
Educational Facility Management Contracts

Risk Flags

Potential for cost overruns in CPIF contracts.
Performance measurement complexity in educational/training services.
Contractor dependency and service continuity risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $47.5 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE BRUNSWICK JOB CORPS CENTER.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

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 $47.5 million.

What is the period of performance?

Start: 2009-02-01. End: 2014-07-31.

What is the track record of Management & Training Corporation in operating Job Corps centers?

Management & Training Corporation (MTC) is a well-established private operator of correctional facilities, detention centers, and Job Corps centers. They have a significant history of managing government contracts, including numerous Job Corps centers across the United States. Their experience typically involves providing a comprehensive range of services, from academic and vocational training to student support, health services, and facility maintenance. While specific performance metrics for all their contracts are not publicly detailed in this award notice, their continued selection for such contracts suggests a generally satisfactory performance history with federal agencies like the Department of Labor. However, like any large contractor, they may have faced scrutiny or performance issues on specific contracts over time, which would require deeper investigation into individual contract performance reports and any associated corrective actions.

How does the awarded amount compare to the total contract duration and scope?

The total award of $47,511,353 over a period spanning from February 1, 2009, to July 31, 2014, represents approximately 5.5 years. This equates to an average annual value of roughly $8.6 million. Considering the scope involves the comprehensive operation of a Job Corps center, including academic instruction, vocational training, student housing, meals, health services, and career placement assistance, this annual figure appears to be within a reasonable range for such a large-scale federal program. Job Corps centers vary in size and student capacity, but operating costs for facilities, staff, curriculum, and support services are substantial. Benchmarking against other Job Corps center contracts of similar size and service complexity would provide a more precise value-for-money assessment.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for operating a Job Corps center?

The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for operating a Job Corps center revolve around the potential for cost overruns and the complexity of defining and measuring performance incentives. While CPIF aims to incentivize efficiency by sharing cost savings or overruns between the government and the contractor, there's a risk that the contractor might incur higher costs than anticipated, even with incentives. Defining objective and measurable performance standards for educational and training outcomes can be challenging, potentially leading to disputes over incentive payments. Furthermore, the contractor might focus on achieving easily measurable metrics rather than the most impactful educational outcomes. Effective oversight by the Department of Labor is crucial to monitor costs, validate performance data, and ensure that the incentives align with the program's core mission of student success and workforce readiness.

What is the historical spending trend for the operation of the Brunswick Job Corps Center?

The provided data indicates a single definitive contract awarded in 2009 for the operation of the Brunswick Job Corps Center, with a total value of $47.5 million and an end date in 2014. The 'dur' field shows '2006', which might indicate the year the center's operations began or the previous contract period. Without access to historical contract databases or specific budget allocations for this center prior to 2009, it is difficult to establish a precise spending trend. However, the award of a large, multi-year contract suggests a consistent and significant federal investment in this facility. To understand historical spending, one would need to examine prior contracts for this specific center or analyze aggregate federal spending on Job Corps operations nationwide over several years.

How does the competition level (4 bidders) impact the potential for price discovery and value for taxpayers?

Having four bidders for the operation of the Brunswick Job Corps Center suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower prices for taxpayers, four offers indicate that the market is sufficiently attractive for multiple firms to invest resources in preparing proposals. This level of competition likely pressured bidders to offer competitive pricing and robust technical solutions to win the contract. It suggests that the Department of Labor had a reasonable selection of qualified vendors to choose from, increasing the likelihood of securing a contract that balances cost-effectiveness with program quality. A very low number of bidders (e.g., one or two) might indicate market concentration or barriers to entry, potentially leading to less optimal pricing.

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: DOLJ09UA00023

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $55,607,654

Exercised Options: $55,354,287

Current Obligation: $47,511,353

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline