Department of Labor's $20.1M contract for Homestead Job Corps Center operations awarded to Res-Care, Inc

Contract Overview

Contract Amount: $20,130,397 ($20.1M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2009-08-01

End Date: 2011-07-31

Contract Duration: 729 days

Daily Burn Rate: $27.6K/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 HOMESTEAD JOB CORPS CENTER AND PROVIDE CAREER TRANSITION SERVICES.

Place of Performance

Location: HOMESTEAD, MIAMI-DADE County, FLORIDA, 33033

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $20.1 million to RES-CARE, INC for work described as: OPERATION OF THE HOMESTEAD JOB CORPS CENTER AND PROVIDE CAREER TRANSITION SERVICES. Key points: 1. The contract value of $20.1 million over two years suggests a significant investment in vocational training and career services. 2. Awarded under full and open competition, the contract indicates a market where multiple providers could potentially meet the government's needs. 3. The cost-plus-incentive-fee (CPIF) pricing structure aims to incentivize efficient performance and cost control by the contractor. 4. The duration of 729 days (approximately 2 years) is typical for service contracts of this nature, allowing for program continuity. 5. The contract's focus on operating a Job Corps center and providing career transition services aligns with federal workforce development goals. 6. The absence of small business set-aside flags suggests the competition was not specifically targeted to small businesses. 7. The contractor, Res-Care, Inc., has experience in operating similar facilities, which is a positive indicator for performance. 8. The geographic focus on Florida (Homestead) highlights the localized impact of this federal spending.

Value Assessment

Rating: good

The contract value of $20.1 million for operating a Job Corps center and providing career transition services appears reasonable given the scope. While specific benchmarks for Job Corps center operations are not readily available, the cost-plus-incentive-fee (CPIF) structure suggests an effort to manage costs effectively by aligning contractor incentives with performance and financial outcomes. Comparing this to other similar federal contracts for vocational training centers would provide a more precise value-for-money assessment, but the initial data suggests a fair price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Labor sought proposals from all responsible sources. The presence of 4 bids suggests a competitive environment, which typically leads to better pricing and service quality for the government. The level of competition is a positive sign for price discovery and ensures that the government is likely receiving a competitive offer.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive environment, driving down costs and encouraging innovation among potential contractors, ultimately leading to better value for public funds.

Public Impact

The primary beneficiaries are the students enrolled in the Homestead Job Corps Center, who receive vocational training and career services. The contract delivers essential services including job training, education, and career placement assistance to prepare individuals for the workforce. The geographic impact is concentrated in Homestead, Florida, serving the local community and economy. Workforce implications include the creation of jobs for the contractor's employees operating the center and the ultimate placement of graduates into skilled labor positions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met effectively.
Ensuring consistent quality of training across all program areas.
Monitoring student placement rates and long-term career success.
Managing the transition of students from training to employment.
Ensuring compliance with all federal regulations and Job Corps standards.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Cost-plus-incentive-fee contract structure incentivizes contractor performance and cost efficiency.
Contractor (Res-Care, Inc.) likely has relevant experience in operating similar facilities.
Focus on career transition services aims to improve long-term employment outcomes for participants.
Significant investment in workforce development aligns with national economic goals.

Sector Analysis

The contract falls within the broader education and training services sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at providing disadvantaged youth with the skills and education needed to secure quality jobs. The market for such services includes a range of educational institutions, non-profit organizations, and private companies specializing in workforce development. The $20.1 million value is substantial for a single center's operation over two years, reflecting the comprehensive nature of the services provided.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary competition was open to all responsible sources, regardless of size. The impact on the small business ecosystem would depend on whether Res-Care, Inc. voluntarily engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures are built into the Cost Plus Incentive Fee (CPIF) structure, which links contractor payment to performance outcomes. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing oversight activities are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Rehabilitation Services

Risk Flags

Potential for cost overruns
Performance variability
Ensuring student success post-program
Contractor capacity and experience
Effectiveness of incentive structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $20.1 million to RES-CARE, INC. OPERATION OF THE HOMESTEAD JOB CORPS CENTER AND PROVIDE CAREER TRANSITION SERVICES.

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 $20.1 million.

What is the period of performance?

Start: 2009-08-01. End: 2011-07-31.

What is the track record of Res-Care, Inc. in operating Job Corps centers or similar vocational training facilities?

Res-Care, Inc. has a history of operating various human services programs, including residential and non-residential facilities. While specific details on their performance with Job Corps centers are not provided in this summary, their involvement in similar government contracts suggests they possess the operational capacity. A deeper dive into their past performance reviews, any documented issues, and successful outcomes from previous contracts would be necessary for a comprehensive assessment of their track record. Their ability to manage complex service delivery, adhere to regulatory requirements, and achieve performance targets in similar environments would be key indicators.

How does the per-student cost of this contract compare to other Job Corps centers or similar federal training programs?

Calculating a precise per-student cost requires knowing the average daily enrollment or the total number of students served over the contract period. Without this enrollment data, a direct per-student cost comparison is not feasible. However, the total contract value of $20.1 million over approximately two years suggests a significant investment per student. Benchmarking against other Job Corps centers or similar federal workforce development programs would require access to their enrollment figures and total contract values. Generally, the cost per student can vary widely based on the intensity of services, the types of training offered, and the geographic location.

What are the key performance indicators (KPIs) used to evaluate Res-Care, Inc.'s performance under this contract?

While not explicitly detailed in the summary, Cost Plus Incentive Fee (CPIF) contracts typically tie a portion of the contractor's fee to achieving specific performance metrics. For a Job Corps center operation, these KPIs likely include student recruitment and enrollment rates, academic and vocational training completion rates, student retention and attendance, job placement rates post-graduation, and potentially post-placement employment retention. The 'incentive' portion of the fee would be awarded based on exceeding targets in these areas, while failure to meet minimum standards could result in reduced fees or penalties.

What is the historical spending trend for the operation of the Homestead Job Corps Center or similar services by the Department of Labor?

To assess historical spending trends, one would need to examine contract awards for the Homestead Job Corps Center or comparable facilities over multiple fiscal years. This would involve searching federal procurement databases for previous contracts awarded for this specific center or for similar Job Corps center operations managed by the Department of Labor or other agencies. Analyzing these historical data points would reveal whether spending has increased, decreased, or remained relatively stable, and identify any significant shifts in contract values or durations that might indicate changes in program scope, funding levels, or contractor performance.

What are the potential risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this service?

The primary risk with a CPIF contract is ensuring that the incentive structure is well-defined and effectively motivates the desired outcomes without creating unintended consequences. For the government, there's a risk that the contractor might focus excessively on achieving incentive targets at the expense of other critical, non-incentivized aspects of service delivery. Conversely, if the targets are set too low, the incentive may not be meaningful. There's also the potential for disputes over performance measurement and the calculation of the incentive fee. Effective government oversight is crucial to ensure the CPIF structure genuinely drives value and performance.

How does the geographic concentration in Florida impact the overall effectiveness and reach of this federal spending?

The geographic concentration in Homestead, Florida, means this federal spending directly benefits a specific regional economy and population. It provides targeted workforce development opportunities for individuals in that area, potentially addressing local unemployment or skill gaps. While this localized impact is significant for the community served, it also means that the broader national reach of federal workforce development funds is not being utilized in other regions through this particular contract. The effectiveness is measured by how well it meets the needs of the target population in Florida, rather than by its national scope.

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: DOLJ09UA00026

Offers Received: 4

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,895,824

Exercised Options: $27,895,824

Current Obligation: $20,130,397

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline