Department of Labor awards $57.1M contract for Job Corps Center operations, with potential for 5 years

Contract Overview

Contract Amount: $57,130,882 ($57.1M)

Contractor: Adams and Associates Inc

Awarding Agency: Department of Labor

Start Date: 2010-05-01

End Date: 2015-10-31

Contract Duration: 2,009 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: CONTRACT AWARD FOR THE OPERATION OF THE RED ROCK JOB CORPS CENTER IN LOPEZ, PENNSYLVANIA. CONTRACT HAS POTENTIAL OF 3 OPTION YEARS(TOTAL CONTRACT POTENTIAL LENGTH IS 5 YEARS).

Place of Performance

Location: LOPEZ, SULLIVAN County, PENNSYLVANIA, 18628

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $57.1 million to ADAMS AND ASSOCIATES INC for work described as: CONTRACT AWARD FOR THE OPERATION OF THE RED ROCK JOB CORPS CENTER IN LOPEZ, PENNSYLVANIA. CONTRACT HAS POTENTIAL OF 3 OPTION YEARS(TOTAL CONTRACT POTENTIAL LENGTH IS 5 YEARS). Key points: 1. Contract awarded to Adams and Associates Inc. for operation of the Red Rock Job Corps Center. 2. The contract includes a base period and potential for three option years, extending the total duration up to five years. 3. The award type is a Definitive Contract, indicating a firm commitment for services. 4. The contract utilizes a Cost Plus Incentive Fee (CPIF) pricing structure, which aims to align contractor performance with government objectives. 5. The North American Industry Classification System (NAICS) code 611519 suggests a focus on vocational and technical training. 6. The contract was awarded through Full and Open Competition, suggesting a competitive bidding process.

Value Assessment

Rating: fair

The contract's value of $57.1 million over a potential five-year period averages approximately $11.4 million annually. Without specific performance metrics or benchmarks for Job Corps center operations, a precise value-for-money assessment is challenging. The CPIF structure suggests an attempt to incentivize efficiency, but the ultimate cost-effectiveness will depend on the achieved performance outcomes and the reasonableness of the costs incurred.

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 suggests a competitive environment where multiple companies likely vied for the contract. The number of bidders is not specified, but the open competition is generally a positive sign for price discovery and potentially achieving a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality, as contractors strive to offer the most compelling proposals.

Public Impact

The primary beneficiaries are the individuals seeking vocational training and employment services through the Job Corps program. The contract delivers operational services for the Red Rock Job Corps Center, facilitating training and support for students. The geographic impact is localized to Lopez, Pennsylvania, where the Red Rock Job Corps Center is situated. Workforce implications include the employment of staff to run the center and the development of skills for program participants who enter the workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Incentive Fee (CPIF) structure can lead to cost overruns if not carefully managed and monitored.
Lack of specific performance benchmarks in the provided data makes it difficult to assess the true value and effectiveness of the contractor's services.
The long-term potential of five years requires sustained oversight to ensure continued value and adherence to program goals.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that could yield better value.
The CPIF contract type incentivizes the contractor to meet or exceed performance targets, potentially leading to improved outcomes.
The contract supports a vital federal program (Job Corps) aimed at workforce development and providing opportunities for disadvantaged youth.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical schools. The Job Corps program is a significant federal initiative aimed at workforce development. Comparable spending benchmarks would involve analyzing other Job Corps center contracts or similar government-funded training programs to assess cost efficiency and operational effectiveness.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, the prime contractor may engage small businesses as subcontractors, which would be detailed in the full contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's contracting officers and program managers. Accountability measures are embedded within the Cost Plus Incentive Fee structure, which links contractor payment to performance. Transparency is generally facilitated through contract award databases, though detailed operational performance data may be less publicly accessible.

Related Government Programs

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

Risk Flags

Potential for cost overruns with CPIF structure if not managed.
Need for detailed performance metrics to assess value.
Long-term contract requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $57.1 million to ADAMS AND ASSOCIATES INC. CONTRACT AWARD FOR THE OPERATION OF THE RED ROCK JOB CORPS CENTER IN LOPEZ, PENNSYLVANIA. CONTRACT HAS POTENTIAL OF 3 OPTION YEARS(TOTAL CONTRACT POTENTIAL LENGTH IS 5 YEARS).

Who is the contractor on this award?

The obligated recipient is ADAMS AND ASSOCIATES INC.

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 $57.1 million.

What is the period of performance?

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

What is the historical spending pattern for the Red Rock Job Corps Center operations?

The provided data indicates a single award of $57,130,882 for the operation of the Red Rock Job Corps Center, with a potential duration of five years (base plus three option years). This specific award covers the period from May 1, 2010, to October 31, 2015. To understand the historical spending pattern, one would need to examine prior contracts for this center, if any, and potentially compare the annual expenditure under this contract to previous periods. Without access to prior contract data or detailed annual breakdowns of this $57.1 million award, a comprehensive historical spending analysis is not possible based solely on the information provided.

How does the annual cost of operating this Job Corps center compare to similar facilities?

The total potential contract value is $57.1 million over approximately five years, averaging around $11.4 million per year. To benchmark this against similar facilities, we would need data on the operating costs of other Job Corps centers, ideally those of comparable size, student capacity, and service offerings. Factors such as geographic location (cost of living, labor rates), specific training programs offered, and student demographics can significantly influence operational costs. Without access to a database of comparable Job Corps center operating expenses, a direct comparison to determine if this contract represents good value-for-money is not feasible.

What are the key performance indicators (KPIs) tied to the Cost Plus Incentive Fee (CPIF) structure for this contract?

The provided data specifies the contract type as Cost Plus Incentive Fee (CPIF) but does not detail the specific Key Performance Indicators (KPIs) or the incentive fee structure. Typically, CPIF contracts link a portion of the contractor's profit to achieving specific performance goals, which are outlined in the contract's Performance Work Statement (PWS). For a Job Corps center, these KPIs could include student enrollment rates, completion rates, job placement success, employer satisfaction, cost control measures, and adherence to safety and quality standards. The exact metrics and the associated fee adjustments would be defined in the contract's detailed terms and conditions.

What is the track record of Adams and Associates Inc. in managing federal contracts, particularly in education or workforce development?

The provided data identifies Adams and Associates Inc. as the contractor for the Red Rock Job Corps Center. To assess their track record, one would need to investigate their past performance on federal contracts. This would involve searching contract databases (like FPDS or SAM.gov) for previous awards to Adams and Associates Inc., examining contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and looking for any history of contract disputes, terminations, or significant performance issues. A thorough review would reveal their experience in similar service areas, their ability to manage costs, meet deadlines, and satisfy government requirements.

What is the potential impact of the option years on the total contract cost and performance expectations?

The contract has a base period and potential for three option years, extending the total duration up to five years. The total contract potential is listed as $57,130,882. This implies that the option years are priced within this ceiling. Exercising option years allows the government to continue services without re-competing the contract, offering continuity. However, it also means the total expenditure could reach the maximum potential value. The performance expectations during the option years should align with the base period's requirements, potentially with adjustments based on lessons learned or evolving program needs. The government's decision to exercise options typically depends on satisfactory performance during the preceding period and continued need for the services.

How does the NAICS code 611519 (Other Technical and Trade Schools) inform the scope of services expected under this contract?

The North American Industry Classification System (NAICS) code 611519, 'Other Technical and Trade Schools,' indicates that the primary focus of the contract is on providing vocational, technical, and trade instruction. This scope typically includes curriculum development and delivery, hands-on skills training, career counseling, job placement assistance, and potentially support services such as academic remediation or life skills training for students. The services provided by Adams and Associates Inc. under this contract are expected to align with the objectives of the Job Corps program, which aims to prepare young people, particularly those from disadvantaged backgrounds, for productive careers and to help them complete their secondary education.

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: 09-JC-REG2-ROCK

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 10395 DOUBLE R BLVD, RENO, NV, 89521

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

Financial Breakdown

Contract Ceiling: $1,684,561,027

Exercised Options: $887,841,810

Current Obligation: $57,130,882

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline