Department of Labor awards $27.3M contract for Gulfport Job Corps Center operations to MINACT, INC

Contract Overview

Contract Amount: $27,305,284 ($27.3M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2009-06-01

End Date: 2014-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE GULFPORT JOB CORPS CENTER TO PROVIDE ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SUPPORT SERVICES FOR A TOTAL OF 280 STUDENTS.

Place of Performance

Location: GULFPORT, HARRISON County, MISSISSIPPI, 39501

State: Mississippi Government Spending

Plain-Language Summary

Department of Labor obligated $27.3 million to MINACT, INC for work described as: OPERATION OF THE GULFPORT JOB CORPS CENTER TO PROVIDE ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SUPPORT SERVICES FOR A TOTAL OF 280 STUDENTS. Key points: 1. Contract focuses on academic, career technical, social skills, and career development training for 280 students. 2. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives for the contractor. 3. Duration of the contract spans over 5 years, indicating a long-term commitment to services. 4. The contract was awarded under full and open competition, implying a competitive bidding process. 5. The North American Industry Classification System (NAICS) code 611519 points to 'Other Technical and Trade Schools'. 6. The contract was awarded by the Employment and Training Administration, a division of the Department of Labor. 7. The base contract value is $13.6M, with potential for growth through incentive fees. 8. The contract is for the operation of the Gulfport Job Corps Center in Mississippi.

Value Assessment

Rating: fair

The contract value of $27.3 million over approximately five years for operating a Job Corps center appears to be within a reasonable range for such services, considering the scope of academic, vocational, and support services provided to 280 students. Benchmarking against similar Job Corps center contracts would provide a clearer picture of value for money. The Cost Plus Incentive Fee (CPIF) structure allows for cost savings and performance improvements to be shared between the government and the contractor, which can incentivize efficiency. However, without specific performance metrics and outcomes, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of three bidders suggests a moderate level of competition for this service contract. While three bidders are better than one or two, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of multiple bidders suggests that the Department of Labor sought the best value, potentially leading to more efficient use of taxpayer funds.

Public Impact

The primary beneficiaries are the 280 students enrolled in the Gulfport Job Corps Center, who receive academic and vocational training. The contract delivers essential services including academic instruction, career technical training, social skills development, and career placement assistance. The geographic impact is focused on Mississippi, specifically serving the Gulfport community and surrounding areas. The contract supports the workforce development goals of the Department of Labor by preparing individuals for employment. Local instructors, support staff, and administrative personnel are employed to operate the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met efficiently.
Ensuring consistent quality of training across all program areas.
Monitoring student retention and successful placement rates to gauge program effectiveness.

Positive Signals

Full and open competition suggests a fair and transparent procurement process.
Cost Plus Incentive Fee structure encourages contractor efficiency and performance.
Long contract duration provides stability for student programs and workforce planning.

Sector Analysis

The contract falls within the education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant government initiative aimed at workforce development. The market for operating such centers involves educational institutions, non-profit organizations, and private companies specializing in training. The total federal spending on vocational training and related services is substantial, with Job Corps being a key component. This contract represents a portion of that broader investment in human capital development.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses could have bid directly or participated as subcontractors. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and monitoring of student outcomes. The Inspector General's office within the Department of Labor would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to the contract's execution. Transparency would be facilitated through contract award databases and potentially public reporting on program performance.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Department of Labor Contracts

Risk Flags

Potential for cost creep due to CPIF structure if not managed tightly.
Risk of declining student outcomes if performance incentives are not sufficiently aligned with quality.
Dependency on a single contractor for a critical workforce development program.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $27.3 million to MINACT, INC. OPERATION OF THE GULFPORT JOB CORPS CENTER TO PROVIDE ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SUPPORT SERVICES FOR A TOTAL OF 280 STUDENTS.

Who is the contractor on this award?

The obligated recipient is MINACT, 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 $27.3 million.

What is the period of performance?

Start: 2009-06-01. End: 2014-11-30.

What is the historical spending pattern for the operation of the Gulfport Job Corps Center?

The provided data indicates a contract awarded in 2009 with an end date in 2014, totaling $27.3 million. This suggests an average annual spending of approximately $5.46 million for the operation of the Gulfport Job Corps Center during this period. To establish a comprehensive historical spending pattern, one would need to examine prior contracts for this specific center, as well as any subsequent contracts awarded after November 2014. Analyzing these past awards would reveal trends in contract values, durations, and the contractors involved, providing context for the current contract's financial scale and duration.

How does the cost per student for this contract compare to other Job Corps centers?

The contract is designed to serve 280 students with a total value of $27.3 million over approximately five years. This equates to an average cost of roughly $97,500 per student over the contract's lifespan, or approximately $19,500 per student per year. To benchmark this effectively, a comparison with the average cost per student across other Job Corps centers nationwide is necessary. Factors such as the cost of living in Mississippi, the specific mix of academic and vocational programs offered, and the intensity of support services can influence per-student costs. A detailed analysis of similar contracts would reveal whether this rate is competitive or indicative of higher operational expenses.

What are the key performance indicators (KPIs) tied to the incentive fee structure of this contract?

The contract type is Cost Plus Incentive Fee (CPIF), which implies that the contractor, MINACT, Inc., can earn additional profit by meeting or exceeding certain performance targets, or incur reduced profit if targets are missed. While the specific KPIs are not detailed in the provided data, typical metrics for Job Corps center operations include student enrollment and retention rates, academic achievement levels (e.g., GED attainment), vocational certification completion rates, job placement rates after graduation, and average post-placement earnings. The incentive fee structure is designed to align the contractor's financial interests with the government's objectives of effectively training and placing students into meaningful employment.

What is MINACT, Inc.'s track record in operating Job Corps centers or similar educational programs?

MINACT, Inc. is identified as the contractor for the operation of the Gulfport Job Corps Center. To assess their track record, a review of their past performance on this and other federal contracts, particularly those related to workforce development and education, would be crucial. This would involve examining contract histories for on-time delivery, quality of services, adherence to budget, and any instances of performance issues or contract disputes. Information from sources like the Federal Procurement Data System (FPDS) and performance evaluations (if publicly available) would shed light on MINACT, Inc.'s experience and reliability in managing complex training programs.

What are the potential risks associated with the long duration of this contract (over 5 years)?

The long duration of this contract, spanning over five years, presents several potential risks. Firstly, it could lead to a reduced incentive for the contractor to innovate or improve services if they feel secure in their position. Secondly, market conditions, student needs, and the job market itself can change significantly over five years, potentially making the contracted services less relevant or efficient if not adapted. Thirdly, long-term contracts can sometimes lock the government into a specific service provider, potentially limiting opportunities to benefit from new providers or more competitive pricing that might emerge later. Robust oversight and contract modification clauses are essential to mitigate these risks.

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: GULFPORT JCC

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 5220 KEELE ST, JACKSON, MS, 39206

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,756,810

Exercised Options: $31,956,792

Current Obligation: $27,305,284

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline