Department of Labor's $39.8M Cincinnati Job Corps Center contract awarded to Management & Training Corporation

Contract Overview

Contract Amount: $39,805,759 ($39.8M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2009-10-01

End Date: 2015-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE CINCINNATI JOB CORPS CENTER IN CINCINNATI, OHIO

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45214

State: Ohio Government Spending

Plain-Language Summary

Department of Labor obligated $39.8 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF THE CINCINNATI JOB CORPS CENTER IN CINCINNATI, OHIO Key points: 1. The contract's value of $39.8 million over its period of performance suggests a significant investment in vocational training. 2. Awarded under full and open competition, the contract indicates a market where multiple providers could potentially offer services. 3. The use of a Cost Plus Incentive Fee (CPIF) pricing structure suggests a focus on performance-based outcomes, with potential for cost savings if targets are met. 4. The contract duration of approximately 6.5 years (from Oct 2009 to Mar 2015) allows for sustained program delivery and evaluation. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools, aligning with the Job Corps mission. 6. The contract was awarded to Management & Training Corporation, a known entity in the workforce development sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the services provided and the number of students served. However, $39.8 million over 6.5 years for operating a Job Corps center is a substantial sum, implying a significant scope of operations. Without comparable contracts for similar centers or detailed cost breakdowns, a precise value-for-money assessment is challenging. The CPIF contract type suggests an attempt to align contractor incentives with cost efficiency and performance, which can be a positive indicator if well-structured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that the Department of Labor sought proposals from all responsible sources. The fact that it was competed suggests that there were likely multiple interested parties capable of managing a Job Corps center. The number of bids received would provide further insight into the level of competition, but this information is not provided. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of providers to bid, potentially driving down costs and improving service quality through market forces.

Public Impact

The primary beneficiaries are the young adults in Cincinnati and surrounding Ohio areas who receive vocational training and job placement assistance. The contract delivers comprehensive services including career training, education, job placement, and supportive services to participants. The geographic impact is focused on Cincinnati, Ohio, providing local economic development through workforce enhancement. Workforce implications include the creation of jobs for instructors, administrators, and support staff at the Job Corps center, as well as the long-term impact of skilled workers entering the regional labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Incentive Fee (CPIF) structure, while performance-oriented, can sometimes lead to cost overruns if not carefully managed and monitored.
The duration of the contract (over 6 years) means that any inefficiencies or performance issues could persist for an extended period if not addressed promptly.
Without specific performance metrics and outcomes data, it's difficult to fully assess the effectiveness and efficiency of the contractor's management.
The reliance on a single contractor for an extended period could reduce flexibility in adapting to changing workforce needs or adopting new training methodologies.

Positive Signals

Awarded through full and open competition, suggesting a robust and potentially cost-effective procurement process.
The CPIF contract type incentivizes the contractor to achieve specific performance goals and manage costs effectively.
The contract supports a vital federal program (Job Corps) aimed at improving employment outcomes for disadvantaged youth.
The sustained funding over several years provides stability for program operations and participant services.

Sector Analysis

The contract falls within the education and workforce development sector, specifically focusing on vocational training for young adults. The Job Corps program is a significant federal initiative aimed at addressing youth unemployment and skill gaps. Comparable spending benchmarks would involve looking at other Job Corps center operations contracts or similar large-scale workforce development programs administered by federal agencies. The market for such services is typically characterized by specialized training providers and non-profit organizations.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and large, established organizations were likely the primary bidders. Subcontracting opportunities for small businesses may exist within the execution of this contract, but this is not explicitly detailed. The overall impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Employment and Training Administration. Mechanisms likely include regular performance reviews, financial audits, and site visits to ensure compliance with contract terms and program objectives. Accountability is typically driven by the CPIF structure, which links contractor payment to performance outcomes. Transparency would be facilitated through contract award databases and potentially public reporting on program results, though specific details on oversight intensity are not provided.

Related Government Programs

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

Risk Flags

Cost Plus Incentive Fee (CPIF) contract type requires careful monitoring of performance metrics.
Contract duration of over 6 years necessitates sustained oversight.
Lack of specific performance outcome data limits immediate value assessment.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $39.8 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF THE CINCINNATI JOB CORPS CENTER IN CINCINNATI, OHIO

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $39.8 million.

What is the period of performance?

Start: 2009-10-01. End: 2015-03-31.

What was the historical spending pattern for the Cincinnati Job Corps Center prior to this contract?

Historical spending data prior to this specific contract (2009-2015) is not directly available in the provided data. However, the Job Corps program has a long history, with centers operating under various contracts over decades. To understand historical patterns, one would need to access procurement records for previous contracts awarded for the operation of the Cincinnati center or similar centers nationwide. Factors influencing historical spending would include inflation, changes in program scope, student enrollment targets, and the competitive landscape for service providers. Analyzing past contract values and durations would provide context for the $39.8 million awarded in this instance.

How did Management & Training Corporation's performance on this contract compare to other federal contracts they have managed?

Assessing Management & Training Corporation's (MTC) performance on this specific contract requires access to performance evaluation reports, award fee determinations, and any contract modifications or disputes. Without this detailed performance data, a direct comparison is not possible. MTC is a large organization that manages numerous government contracts across various agencies, including other Job Corps centers. A comprehensive analysis would involve reviewing MTC's overall track record with the Department of Labor and other agencies, looking for patterns in performance ratings, cost control, and compliance. Benchmarking against industry standards for Job Corps center operations would also be crucial.

What were the key performance indicators (KPIs) tied to the incentive fee in this Cost Plus Incentive Fee (CPIF) contract?

The specific Key Performance Indicators (KPIs) that determined the incentive fee for this contract are not detailed in the provided data. Typically, for Job Corps contracts, KPIs would focus on student outcomes such as graduation rates, attainment of academic and vocational credentials, job placement rates (both short-term and long-term), and average wages of placed graduates. Other potential KPIs could include cost efficiency metrics, safety records, and participant satisfaction. The CPIF structure implies that the contractor received a base fee plus additional fee based on achieving or exceeding pre-defined targets for these KPIs, with potential penalties for underperformance.

What was the total number of bids received for this contract, and how did the pricing of the winning bid compare to others?

The provided data indicates that the contract was awarded under 'FULL AND OPEN COMPETITION' and lists the number of offers received as '2' (no). This suggests that two offers were submitted in response to the solicitation. However, the data does not include the pricing details of the winning bid or any other submitted bids. To compare pricing, one would need access to the bid tabulation and potentially the source selection decision document. A competitive analysis would typically involve evaluating the proposed costs against the government's estimate and assessing the value proposition offered by each bidder.

Were there any significant challenges or disputes encountered during the performance of this contract?

Information regarding significant challenges or disputes during the performance of this contract is not included in the provided data. Such details would typically be found in contract administration records, such as cure notices, show cause letters, contract modifications related to claims, or termination actions. Without access to these administrative records, it is impossible to determine if the contractor faced major hurdles or if there were disagreements between the contractor and the Department of Labor regarding contract requirements, performance, or payment.

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

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $115,397,663

Exercised Options: $103,544,890

Current Obligation: $39,805,759

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline