Department of Labor awards $60M contract to Texas Educational Foundation for technical training

Contract Overview

Contract Amount: $60,059,954 ($60.1M)

Contractor: Texas Educational Foundation, Inc.

Awarding Agency: Department of Labor

Start Date: 2010-05-01

End Date: 2015-10-31

Contract Duration: 2,009 days

Daily Burn Rate: $29.9K/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 DAVID L. CARRASCO JCC

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79935

State: Texas Government Spending

Plain-Language Summary

Department of Labor obligated $60.1 million to TEXAS EDUCATIONAL FOUNDATION, INC. for work described as: OPERATION OF THE DAVID L. CARRASCO JCC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $60M over 5 years indicates significant investment in workforce development. 3. The sector is 'Other Technical and Trade Schools', highlighting a focus on specialized skills. 4. The contract type is Cost Plus Incentive Fee, which can incentivize performance but requires careful oversight.

Value Assessment

Rating: fair

The contract value of $60M over 5 years is substantial. Benchmarking against similar technical training contracts is difficult without more specific service details, but the per-unit cost of $29,895 suggests a high-value, potentially specialized training program.

Cost Per Unit: $29,895

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a definitive contract structure implies a well-defined scope of work.

Taxpayer Impact: Taxpayer funds are being used to support workforce development and specialized training, aiming to improve employment outcomes.

Public Impact

Potential for improved workforce skills and employment opportunities in Texas. Investment in specialized technical education could address specific industry needs. The long-term nature of the contract allows for sustained program impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contracts require robust monitoring to ensure cost control.
The specific outcomes and effectiveness of the training program need to be clearly defined and measured.

Positive Signals

Awarded through full and open competition.
Focus on technical and trade skills addresses potential labor market gaps.

Sector Analysis

The 'Other Technical and Trade Schools' sector involves specialized training programs designed to equip individuals with specific vocational skills. Spending in this area is often driven by workforce development initiatives and the need to fill skilled labor shortages across various industries.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The Cost Plus Incentive Fee contract type necessitates strong oversight from the Department of Labor to ensure that costs are managed effectively and that performance incentives are aligned with program goals.

Related Government Programs

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

Risk Flags

Potential for cost overruns with Cost Plus Incentive Fee structure.
Lack of specific detail on training curriculum and target industries.
Need for robust performance monitoring and evaluation mechanisms.
Unclear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $60.1 million to TEXAS EDUCATIONAL FOUNDATION, INC.. OPERATION OF THE DAVID L. CARRASCO JCC

Who is the contractor on this award?

The obligated recipient is TEXAS EDUCATIONAL FOUNDATION, 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 $60.1 million.

What is the period of performance?

Start: 2010-05-01. End: 2015-10-31.

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

The provided data does not specify the exact technical skills covered. However, the 'Other Technical and Trade Schools' NAICS code suggests a broad range of vocational training. To assess alignment with labor market demands, a detailed review of the contract's statement of work and consultation with industry experts would be necessary to understand the curriculum's relevance and potential impact on employment outcomes.

How will the 'incentive fee' component of the contract be structured and measured to ensure optimal performance and cost-effectiveness?

The structure and measurement of the incentive fee are not detailed in the provided data. Typically, for a Cost Plus Incentive Fee (CPIF) contract, specific performance metrics (e.g., completion rates, job placement rates, skill proficiency) are established. The incentive fee is then adjusted based on the contractor's achievement of these targets, aiming to motivate higher performance while managing costs.

What mechanisms are in place to evaluate the long-term success and return on investment of this $60 million workforce development program?

The data does not specify the evaluation mechanisms. A comprehensive evaluation would likely involve tracking participant employment status, wage progression, and skill utilization post-training. The Department of Labor would need to establish clear Key Performance Indicators (KPIs) and conduct follow-up studies to determine the program's effectiveness and its overall return on investment for taxpayers.

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: S10F6TX015

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 1251 IH 35 N, SAN MARCOS, TX, 78666

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

Financial Breakdown

Contract Ceiling: $62,120,863

Exercised Options: $60,059,954

Current Obligation: $60,059,954

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline