Department of Labor awards $79.9M contract for Westover Job Corps Center operations to Alutiiq Education & Training, LLC

Contract Overview

Contract Amount: $79,927,298 ($79.9M)

Contractor: Alutiiq Education & Training, LLC

Awarding Agency: Department of Labor

Start Date: 2010-11-01

End Date: 2016-08-31

Contract Duration: 2,130 days

Daily Burn Rate: $37.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE WESTOVER JOB CORPS CENTER

Place of Performance

Location: CHICOPEE, HAMPDEN County, MASSACHUSETTS, 01022

State: Massachusetts Government Spending

Plain-Language Summary

Department of Labor obligated $79.9 million to ALUTIIQ EDUCATION & TRAINING, LLC for work described as: OPERATION OF THE WESTOVER JOB CORPS CENTER Key points: 1. The contract value of $79.9M over approximately 6 years represents a significant investment in vocational training. 2. Alutiiq Education & Training, LLC secured this award through full and open competition, indicating a competitive bidding process. 3. The Cost Plus Incentive Fee (CPIF) contract type suggests a focus on performance-based incentives to manage costs and achieve objectives. 4. The sector for 'Other Technical and Trade Schools' is crucial for workforce development and economic mobility.

Value Assessment

Rating: good

The contract value of $79.9M over 2130 days averages to approximately $37,525 per day. This daily rate appears reasonable for operating a Job Corps center, considering staffing, facilities, and program costs.

Cost Per Unit: $37,525 (daily average)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process where multiple vendors were considered, but specific exclusions were applied. This method aims to ensure fair pricing through market competition.

Taxpayer Impact: The competitive award process is designed to secure the best value for taxpayers by leveraging market forces to drive down costs and improve service quality.

Public Impact

Provides essential job training and educational services to young adults, enhancing their employability. Supports local economies through job creation and by preparing a skilled workforce for regional industries. The Job Corps program aims to reduce poverty and unemployment by equipping individuals with valuable career skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with CPIF contract type if incentives are not structured effectively.
Dependence on a single contractor for a critical social program.
Ensuring consistent quality of training across the contract duration.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
CPIF contract type incentivizes contractor performance and cost control.
Long-term contract provides stability for program operations and participant services.

Sector Analysis

The 'Other Technical and Trade Schools' sector is vital for vocational education and workforce development. Spending in this area supports programs that bridge the gap between education and employment, often with significant social and economic benefits.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The Office of the Assistant Secretary for Administration and Management within the Department of Labor is responsible for overseeing this contract. Robust oversight is crucial to ensure program effectiveness, fiscal responsibility, and adherence to contract terms.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for cost creep due to CPIF structure.
Lack of small business participation noted.
Contract duration is substantial, requiring consistent oversight.
Dependence on a single entity for a critical social service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $79.9 million to ALUTIIQ EDUCATION & TRAINING, LLC. OPERATION OF THE WESTOVER JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is ALUTIIQ EDUCATION & TRAINING, 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 $79.9 million.

What is the period of performance?

Start: 2010-11-01. End: 2016-08-31.

How does the daily operational cost benchmark compare to other Job Corps centers or similar vocational training programs?

The daily average cost of approximately $37,525 for operating the Westover Job Corps Center needs to be benchmarked against similar federal or private vocational training programs. Factors like geographic location, specific training offered, and student population size can influence costs. A comparative analysis would reveal if this expenditure is efficient or if there are opportunities for cost savings without compromising service quality.

What are the specific performance metrics and incentive structures within the Cost Plus Incentive Fee (CPIF) agreement?

Understanding the CPIF structure is key to assessing value and risk. The specific metrics tied to incentives (e.g., student graduation rates, job placement success, cost savings) and the corresponding fee adjustments need to be examined. Well-defined metrics ensure the contractor is motivated to achieve desired outcomes efficiently, while poorly defined ones could lead to unintended consequences or inflated costs.

What is the track record of Alutiiq Education & Training, LLC in managing similar government contracts, particularly in workforce development?

The contractor's past performance is a critical indicator of future success. Reviewing Alutiiq Education & Training, LLC's history with government contracts, especially those involving job training and educational services, is essential. Assessing their performance on previous contracts, including adherence to schedules, budget management, and quality of services delivered, provides insight into their capability to successfully execute the Westover Job Corps Center operations.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOLJ09RFP00002

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3909 ARCTIC BLVD STE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $155,870,722

Exercised Options: $108,135,706

Current Obligation: $79,927,298

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline