Department of Labor awards $50.6M contract for Job Corps center operations and career transition services

Contract Overview

Contract Amount: $50,557,310 ($50.6M)

Contractor: Fluor Federal Solutions, LLC

Awarding Agency: Department of Labor

Start Date: 2009-09-01

End Date: 2015-02-28

Contract Duration: 2,006 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF MISSISSIPPI JOB CORPS CENTER AND PROVIDE CAREER TRANSITION SERVICES TO JOB CORPS STUDENTS RETURNING TO CENTER'S ZONE OF INFLUENCE.

Place of Performance

Location: CRYSTAL SPRINGS, COPIAH County, MISSISSIPPI, 39059

State: Mississippi Government Spending

Plain-Language Summary

Department of Labor obligated $50.6 million to FLUOR FEDERAL SOLUTIONS, LLC for work described as: OPERATION OF MISSISSIPPI JOB CORPS CENTER AND PROVIDE CAREER TRANSITION SERVICES TO JOB CORPS STUDENTS RETURNING TO CENTER'S ZONE OF INFLUENCE. Key points: 1. Contract focuses on operational efficiency and student support for the Mississippi Job Corps Center. 2. The award utilized full and open competition, suggesting a robust bidding process. 3. Performance-based contract type (Cost Plus Incentive Fee) aims to align contractor incentives with government objectives. 4. The contract duration spans over five years, indicating a significant long-term commitment. 5. Geographic focus on Mississippi suggests localized impact and service delivery.

Value Assessment

Rating: fair

The contract value of $50.6 million over approximately 5.4 years averages to about $9.35 million annually. Benchmarking this against similar Job Corps center operations requires detailed cost breakdowns and service level agreements, which are not fully available in the provided data. However, the Cost Plus Incentive Fee structure suggests an attempt to manage costs by incentivizing efficiency, which can be a positive indicator for value if targets are met. Without specific performance metrics and comparable contract data, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more competitive environment, potentially driving down prices and improving the quality of services offered. The fact that it was competed suggests that the Department of Labor sought the best value through a structured procurement process, likely involving multiple bidders vying for the opportunity to operate the Mississippi Job Corps Center.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors compete on price and performance, leading to more efficient use of public funds and potentially better service delivery for the allocated budget.

Public Impact

Job Corps students in Mississippi and surrounding areas will benefit from operational support and career transition services. The contract ensures the continued operation of the Mississippi Job Corps Center, providing vocational training and educational opportunities. Services include career counseling, job placement assistance, and support for students returning to their communities. The contract has implications for the local workforce in Mississippi, potentially creating or sustaining jobs related to the center's operation and student support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not effectively managed or if unforeseen operational challenges arise.
Ensuring consistent quality of career transition services across the contract duration requires ongoing monitoring.
Dependence on a single contractor for a critical service like Job Corps operations necessitates strong performance management.

Positive Signals

The use of a Cost Plus Incentive Fee contract structure incentivizes the contractor to achieve specific performance goals and manage costs effectively.
Full and open competition suggests a thorough vetting process and potential for competitive pricing.
The long-term nature of the contract provides stability for the Job Corps program and its students.

Sector Analysis

The Job Corps program is a critical component of the Department of Labor's workforce development initiatives, aimed at providing disadvantaged youth with vocational training and education. This contract falls within the broader 'Education and Training Services' sector, specifically focusing on the operational management of a training facility. The market for such services involves specialized educational service providers and government contractors experienced in managing large-scale training programs. Comparable spending benchmarks would typically be found by analyzing other Job Corps center contracts across different regions.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). This suggests that the primary focus was on full and open competition to secure the best overall offer. While there is no explicit small business set-aside, Fluor Federal Solutions, as the prime contractor, may still engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem. However, the direct impact on small business set-aside goals appears limited based on this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Mechanisms likely include regular performance reviews, financial audits, and adherence to the terms and conditions of the Cost Plus Incentive Fee contract. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Job Corps Program
Workforce Development Programs
Vocational Training Contracts
Federal Education Services Contracts

Risk Flags

Performance Risk
Cost Management Risk
Regulatory Compliance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $50.6 million to FLUOR FEDERAL SOLUTIONS, LLC. OPERATION OF MISSISSIPPI JOB CORPS CENTER AND PROVIDE CAREER TRANSITION SERVICES TO JOB CORPS STUDENTS RETURNING TO CENTER'S ZONE OF INFLUENCE.

Who is the contractor on this award?

The obligated recipient is FLUOR FEDERAL SOLUTIONS, LLC.

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 $50.6 million.

What is the period of performance?

Start: 2009-09-01. End: 2015-02-28.

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

The provided data details a single contract award of $50,557,309.69 for the operation of the Mississippi Job Corps Center and career transition services, spanning from September 1, 2009, to February 28, 2015. This represents a period of approximately 5.4 years. To understand the historical spending pattern, one would need to examine previous contracts awarded for this specific center or similar centers managed by the Department of Labor. Without access to prior contract data, it's impossible to establish a trend or compare year-over-year spending. The current contract's total value suggests a significant annual investment in the center's operations and student support services.

How does the awarded amount compare to similar Job Corps center contracts?

Comparing this $50.6 million contract to similar Job Corps center contracts requires access to a database of historical awards for other centers. Factors influencing contract value include the size of the center, the scope of services offered (e.g., specific trades trained, residential vs. non-residential), geographic location, and the duration of the contract. Generally, larger centers or those in higher cost-of-living areas might command higher contract values. The Cost Plus Incentive Fee (CPIF) structure also plays a role, as the final cost can vary based on performance against established targets. A comprehensive benchmark would involve analyzing contracts awarded around the same period for centers of comparable size and service scope.

What specific performance metrics are tied to the incentive fee in this contract?

The provided data indicates the contract type is 'COST PLUS INCENTIVE FEE' (pt: "COST PLUS INCENTIVE FEE"), but it does not specify the exact performance metrics used to determine the incentive fee. Typically, for Job Corps center operations, these metrics could include student enrollment rates, on-time graduation rates, job placement rates post-graduation, employer satisfaction with placed graduates, and operational efficiency measures (e.g., cost per student). The 'Office of the Assistant Secretary for Administration and Management' (sa) would have defined these metrics in the contract's Statement of Work (SOW) to align the contractor's efforts with the program's goals and ensure accountability for delivering quality services.

What is Fluor Federal Solutions' track record with Department of Labor contracts, particularly Job Corps?

Fluor Federal Solutions is a large government contractor with a history of managing complex projects across various federal agencies. While this specific data does not detail Fluor's entire track record with the Department of Labor or the Job Corps program, their ability to win a significant, full-and-openly competed contract like this suggests they have relevant experience and capabilities. A deeper analysis would involve reviewing Fluor's past performance evaluations (e.g., CPARS reports) on similar contracts, their history with the Job Corps program specifically, and any past issues or commendations received from the Department of Labor or other contracting agencies to fully assess their suitability and performance reliability.

What are the potential risks associated with operating a Job Corps center under this contract?

Key risks associated with operating a Job Corps center under this contract include ensuring consistent student recruitment and retention, maintaining high-quality vocational training aligned with labor market demands, achieving successful job placements for graduates, and managing operational costs effectively within the CPIF structure. There's also the risk of regulatory changes impacting the Job Corps program, potential shifts in student demographics requiring adaptive service delivery, and the need for robust safety and security protocols within the center. The contractor must also navigate potential challenges in maintaining facilities and ensuring compliance with all federal regulations and performance standards set forth by the Department of Labor.

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: DOLJ09UA00027

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,491,454

Exercised Options: $53,416,101

Current Obligation: $50,557,310

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline