Department of Labor awards $81.4M contract to RES-CARE, INC for Other Technical and Trade Schools services

Contract Overview

Contract Amount: $81,339,632 ($81.3M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2010-07-01

End Date: 2015-12-31

Contract Duration: 2,009 days

Daily Burn Rate: $40.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE GUTHRIE JCC

Place of Performance

Location: GUTHRIE, LOGAN County, OKLAHOMA, 73044

State: Oklahoma Government Spending

Plain-Language Summary

Department of Labor obligated $81.3 million to RES-CARE, INC for work described as: OPERATION OF THE GUTHRIE JCC Key points: 1. The contract value of $81.4M is significant, indicating a substantial investment in technical and trade education. 2. RES-CARE, INC is the sole awardee, raising questions about the breadth of competition. 3. The contract type (Cost Plus Incentive Fee) can lead to cost overruns if not managed carefully. 4. The sector is 'Other Technical and Trade Schools,' which is crucial for workforce development.

Value Assessment

Rating: fair

The contract value of $81.4M over 5 years and 4 months suggests an average annual spend of approximately $15.8M. Benchmarking this against similar contracts for technical and trade schools is difficult without more specific service details, but the overall value appears substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows for the best pricing. However, with only one awardee listed, the actual price discovery mechanism and its effectiveness are unclear.

Taxpayer Impact: Taxpayer funds are being used for workforce development through technical and trade schools. The effectiveness of this spending in achieving its goals will determine the ultimate taxpayer impact.

Public Impact

Provides essential training and educational services to individuals seeking technical and trade skills. Supports workforce development initiatives, potentially leading to increased employment opportunities. The investment in education can have long-term economic benefits for the region and the nation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Cost Plus Incentive Fee structure.
Limited visibility into the effectiveness of competition if only one awardee was selected.
Contract duration is long, requiring sustained oversight.

Positive Signals

Addresses a critical need for skilled labor in technical and trade fields.
Awarded under full and open competition, suggesting an attempt to maximize value.
Supports workforce development and economic opportunity.

Sector Analysis

The 'Other Technical and Trade Schools' sector is vital for equipping the workforce with specialized skills. Spending in this area is benchmarked against the demand for specific trades and the cost of delivering quality education and training programs.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Labor's Employment and Training Administration is responsible for overseeing this contract. Robust oversight is crucial to ensure funds are used effectively and contract objectives are met, especially with a Cost Plus Incentive Fee structure.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Cost Plus Incentive Fee contract type can lead to higher costs if not managed tightly.
Sole awardee raises questions about the extent of competition and potential price discovery.
Long contract duration requires sustained oversight to ensure performance and value.
Lack of specific service details makes it difficult to benchmark against similar contracts.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $81.3 million to RES-CARE, INC. OPERATION OF THE GUTHRIE JCC

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 $81.3 million.

What is the period of performance?

Start: 2010-07-01. End: 2015-12-31.

What specific technical and trade skills are being provided under this contract, and how do they align with current labor market demands?

The data does not specify the exact technical and trade skills. To assess value, it's crucial to understand if the training aligns with high-demand occupations, addresses skill gaps, and leads to successful employment outcomes for participants. This alignment is key to justifying the $81.4M investment.

What were the key performance indicators (KPIs) for RES-CARE, INC, and how were they measured to justify the incentive fee?

The contract type is Cost Plus Incentive Fee (CPIF), which means the contractor is reimbursed for costs plus a performance-based incentive. Understanding the specific KPIs (e.g., completion rates, job placement rates, participant satisfaction) and the measurement methodology is essential to evaluate if the incentive fee was earned appropriately and if the government received optimal value.

How effective has the training provided by RES-CARE, INC been in terms of participant success and long-term employment?

Effectiveness can be measured by tracking participant outcomes such as graduation rates, certification attainment, and post-training employment statistics. A comprehensive evaluation of these metrics would determine if the $81.4M investment has successfully contributed to workforce development and met the Department of Labor's objectives.

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: S10F6OK016

Offers Received: 1

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: $101,245,187

Exercised Options: $88,594,484

Current Obligation: $81,339,632

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline