Department of Labor awards $48M contract for Job Corps Center operations, with potential for 5 years

Contract Overview

Contract Amount: $47,967,832 ($48.0M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2011-01-01

End Date: 2016-06-30

Contract Duration: 2,007 days

Daily Burn Rate: $23.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: CONTRACT AWARD FOR THE OPERATION OF THE OLD DOMINION JOB CORPS CENTER IN MONROE , VA. CONTRACT HAS A POTENTIAL OF 3 OPTION YEARS. TOTAL POTENTIAL CONTRACT LENGTH IS 5 YEARS.

Place of Performance

Location: MONROE, AMHERST County, VIRGINIA, 24574

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $48.0 million to RES-CARE, INC for work described as: CONTRACT AWARD FOR THE OPERATION OF THE OLD DOMINION JOB CORPS CENTER IN MONROE , VA. CONTRACT HAS A POTENTIAL OF 3 OPTION YEARS. TOTAL POTENTIAL CONTRACT LENGTH IS 5 YEARS. Key points: 1. The contract's cost-plus-incentive-fee structure aims to align contractor performance with government objectives. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. The potential contract length of five years indicates a long-term need for these training services. 4. The specific North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade education. 5. The contract's duration and value suggest a significant investment in workforce development.

Value Assessment

Rating: good

The total potential value of $47,967,832.04 over approximately five years for operating a Job Corps center appears reasonable given the scope of services. Benchmarking against similar Job Corps center contracts would provide a more precise value-for-money assessment. The cost-plus-incentive-fee (CPIF) pricing structure is common for services where performance can be measured and incentivized, aiming to control costs while ensuring quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to drive down prices and ensure the government receives the best value. The presence of three bidders (as indicated by 'no': 3) suggests a healthy level of competition for this type of service.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely results in more efficient use of funds and potentially lower overall costs for the services provided.

Public Impact

The primary beneficiaries are individuals seeking vocational training and job placement services through the Job Corps program. The contract delivers essential educational and training services aimed at improving participants' employability. The geographic impact is focused on Monroe, Virginia, where the Old Dominion Job Corps Center is located. Workforce implications include the creation of jobs for instructors, support staff, and administrative personnel at the center, as well as the development of a skilled workforce for the local and national economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if performance targets are not met efficiently.
Ensuring consistent quality of training across all program years and potential option periods.
Monitoring contractor performance to ensure adherence to program goals and participant success metrics.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for good value.
The CPIF contract type incentivizes contractor performance and cost control.
The long-term nature of the contract (potential 5 years) suggests a stable and ongoing need for these critical workforce development services.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical education. The Job Corps program is a significant federal initiative aimed at preparing young people for careers. Comparable spending benchmarks would involve analyzing other Job Corps center contracts awarded by the Department of Labor and similar agencies, as well as other government-funded workforce development programs. The market size for such services is substantial, driven by federal and state investments in education and employment.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Analysis of the award notice and related documents would be necessary to determine the extent of small business participation. Typically, large federal contracts are encouraged to include subcontracting plans to ensure opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. Accountability measures are likely built into the CPIF contract structure, with performance metrics and reporting requirements. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be less accessible. The Inspector General's office for the Department of Labor would have jurisdiction over audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Vocational Education Contracts

Risk Flags

Potential for cost overruns in CPIF contracts.
Ensuring consistent service quality over a long contract duration.
Need for robust performance monitoring and evaluation.
Dependency on federal funding levels and priorities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $48.0 million to RES-CARE, INC. CONTRACT AWARD FOR THE OPERATION OF THE OLD DOMINION JOB CORPS CENTER IN MONROE , VA. CONTRACT HAS A POTENTIAL OF 3 OPTION YEARS. TOTAL POTENTIAL CONTRACT LENGTH IS 5 YEARS.

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 $48.0 million.

What is the period of performance?

Start: 2011-01-01. End: 2016-06-30.

What is the track record of RES-CARE, INC. in managing federal contracts, particularly those related to education and training?

A thorough review of RES-CARE, INC.'s contract history with federal agencies, especially the Department of Labor, would be necessary to assess their track record. This would involve examining past performance evaluations, any documented disputes or contract terminations, and their success in meeting performance metrics on similar programs. Information from sources like the Federal Procurement Data System (FPDS) and contract award databases can provide insights into their experience, the types of contracts they've held, and their performance ratings. A positive history with comparable Job Corps centers or similar workforce development initiatives would indicate a lower performance risk for this contract.

How does the awarded amount compare to the operational costs of similar Job Corps centers?

To benchmark the value, one would compare the awarded amount ($47.97 million potential) against the operational budgets of other Job Corps centers of similar size and scope, particularly those managed by the Department of Labor. Factors such as geographic location (cost of living, labor rates), the specific mix of training programs offered, and the number of students served would need to be considered for a fair comparison. Analyzing historical spending data for the Old Dominion Job Corps Center itself, if available, would also provide context. Without direct comparative data, assessing whether this represents excellent, good, or fair value is challenging, but the competitive award process suggests an effort to achieve reasonable pricing.

What are the key performance indicators (KPIs) tied to the incentive fee structure in this CPIF contract?

The specific Key Performance Indicators (KPIs) for this Cost Plus Incentive Fee (CPIF) contract are not detailed in the provided summary. However, typical KPIs for Job Corps center operations often include metrics related to student enrollment and retention rates, program completion rates, job placement success (both in terms of percentage and wage levels), and participant satisfaction. The incentive fee structure would be designed to reward RES-CARE, INC. for exceeding targets in these areas and potentially penalize them for falling short. A detailed review of the contract's Statement of Work (SOW) and Performance Work Statement (PWS) would reveal the precise KPIs and the associated fee adjustments.

What is the historical spending trend for the operation of the Old Dominion Job Corps Center?

The provided data indicates this is a new award starting in January 2011 with an end date in June 2016 (plus potential option years). Therefore, historical spending data for this specific contract award period is not yet available. To understand historical spending, one would need to look at previous contracts awarded for the operation of the Old Dominion Job Corps Center, if any, or analyze the overall budget allocated to the Job Corps program nationally and its distribution to individual centers over prior years. This would help establish a baseline and identify any significant year-over-year changes in funding.

What are the potential risks associated with a 5-year contract duration for Job Corps center operations?

A 5-year duration for a Job Corps center operation contract presents several potential risks. Firstly, there's the risk of contractor complacency or a decline in service quality over an extended period if performance monitoring is not rigorous. Secondly, changes in federal funding priorities, economic conditions, or workforce needs could arise during the contract term, potentially requiring significant adjustments to the program's scope or services, which might be challenging to implement mid-contract. Thirdly, the long-term commitment ties up significant federal resources that might be needed elsewhere if priorities shift. Finally, unforeseen operational challenges or changes in the local labor market could impact the center's effectiveness over such a long timeframe.

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: 10JCREG2DOM

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Harris Hill Nursing Facility LLC (UEI: 081017660)

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: $877,716,178

Exercised Options: $423,787,786

Current Obligation: $47,967,832

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline