Department of Labor's $52.7M contract for Milwaukee Job Corps Center operations awarded to MINACT, INC

Contract Overview

Contract Amount: $52,739,214 ($52.7M)

Contractor: Minact, Inc

Awarding Agency: Department of Labor

Start Date: 2010-07-01

End Date: 2021-09-30

Contract Duration: 4,109 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE MILWAUKEE JOB CORPS CENTER IN MILWAUKEE, WISCONSIN

Place of Performance

Location: MILWAUKEE, MILWAUKEE County, WISCONSIN, 53223

State: Wisconsin Government Spending

Plain-Language Summary

Department of Labor obligated $52.7 million to MINACT, INC for work described as: OPERATION OF THE MILWAUKEE JOB CORPS CENTER IN MILWAUKEE, WISCONSIN Key points: 1. Contract value represents significant investment in vocational training and workforce development. 2. Full and open competition suggests a robust bidding process. 3. Long contract duration (over 10 years) may indicate stable performance or potential for cost overruns. 4. Cost Plus Incentive Fee (CPIF) structure incentivizes performance but requires careful monitoring. 5. The contract's focus on technical and trade schools aligns with national workforce needs. 6. Geographic concentration in Wisconsin may limit broader national impact unless replicated.

Value Assessment

Rating: good

The contract value of approximately $52.7 million over its 10-year duration averages around $5.27 million annually. Benchmarking this against similar Job Corps center operations requires detailed cost breakdowns, but the duration suggests a potentially stable, albeit significant, investment. The CPIF pricing structure, while common for performance-based contracts, necessitates diligent oversight to ensure costs remain reasonable and aligned with achieved outcomes. Without specific per-unit cost data for student training or placement, a precise value-for-money assessment is challenging, but the sustained award implies a level of satisfaction with the contractor's performance.

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. The presence of 6 bidders suggests a competitive market for operating Job Corps centers. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government. The government's ability to select from multiple proposals likely resulted in a better-negotiated price and service offering compared to a sole-source or limited competition scenario.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery. The government secured a contract through a process that likely yielded a fair market price.

Public Impact

Benefits disadvantaged youth and young adults by providing vocational training and educational services. Delivers essential workforce development programs aimed at improving employability. Impacts the Milwaukee, Wisconsin area through local job training and potential employment opportunities. Supports the local economy by employing staff and engaging local resources for the center's operation. Aims to reduce unemployment and underemployment among participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could mask inefficiencies if not actively managed.
CPIF contracts require robust performance metrics and oversight to prevent cost creep.
Geographic concentration limits scalability of this specific operational model.
Dependence on a single contractor for over a decade may reduce future competitive pressure.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Long-term contract suggests consistent performance and reliability.
Focus on vocational training addresses critical workforce development needs.
CPIF structure incentivizes contractor to meet or exceed performance targets.

Sector Analysis

The operation of Job Corps centers falls within the broader education and workforce development sector, specifically under vocational and technical training. This sector is crucial for addressing skills gaps and preparing individuals for in-demand occupations. The market for operating such centers can be competitive, involving non-profit organizations, educational institutions, and private companies. Government spending in this area is driven by the need to provide opportunities for underserved populations and meet national workforce demands. Comparable spending benchmarks would involve analyzing the per-student operational costs of similar federally funded training programs.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. However, the operation of a large-scale training center typically involves procurement of goods and services, which could offer opportunities for small businesses. The prime contractor, MINACT, INC., would be responsible for managing any subcontracting plans. Analysis of past performance and future solicitations would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). The Cost Plus Incentive Fee (CPIF) structure necessitates rigorous performance monitoring and financial auditing to ensure funds are used effectively and objectives are met. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Department of Labor Training Grants
Vocational Education Funding
Federal Skills Training Initiatives

Risk Flags

Long contract duration may reduce flexibility and opportunities for market-driven innovation.
CPIF structure requires diligent oversight to ensure cost control and value.
Performance metrics and outcomes need continuous monitoring to justify continued investment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $52.7 million to MINACT, INC. OPERATION OF THE MILWAUKEE JOB CORPS CENTER IN MILWAUKEE, WISCONSIN

Who is the contractor on this award?

The obligated recipient is MINACT, 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 $52.7 million.

What is the period of performance?

Start: 2010-07-01. End: 2021-09-30.

What is the historical spending trend for the Milwaukee Job Corps Center operations contract?

The provided data covers the period from July 1, 2010, to September 30, 2021, with a total award value of $52,739,214.11. This averages to approximately $5.27 million per year over the 10-year, 3-month duration. Without access to annual obligation data, it's difficult to ascertain specific spending trends year-over-year. However, the consistent award to MINACT, INC. suggests a stable funding stream for the center's operations throughout this period. Further analysis of annual reports or obligation data would be needed to identify any fluctuations in spending or changes in funding allocation over time.

How does the cost per student for this contract compare to national averages for Job Corps centers?

Determining the precise cost per student requires knowing the total number of students served annually and the total operational costs. The contract value of $52.7 million over approximately 10.25 years yields an average annual cost of $5.14 million. If, for example, the center served 500 students annually, the average cost per student would be around $10,280. National averages for Job Corps centers can vary significantly based on location, program intensity, and student demographics. Generally, costs can range from $8,000 to $15,000 per student per year. Without specific student enrollment and cost allocation data for this contract, a direct comparison is speculative. However, the average annual cost appears to be within the typical range for such programs.

What are the key performance indicators (KPIs) used to evaluate MINACT, INC.'s performance under this contract?

As a Cost Plus Incentive Fee (CPIF) contract, performance is typically evaluated against pre-defined Key Performance Indicators (KPIs) that are tied to incentive fees. While specific KPIs are not detailed in the provided data, common metrics for Job Corps center operations include student academic achievement (e.g., GED attainment rates), vocational training completion rates, job placement rates (both in-field and at a living wage), and student retention rates. The 'incentive' aspect of the CPIF structure means that MINACT, INC. would earn additional profit by exceeding targets on these KPIs, while failing to meet them could result in reduced profit. The Department of Labor would actively monitor these metrics to ensure program effectiveness and value for money.

What is the track record of MINACT, INC. in managing federal contracts, particularly in the education or workforce development sector?

MINACT, INC. has a history of managing federal contracts, including those related to Job Corps centers. The award of this specific contract, spanning over a decade, suggests a degree of success and reliability in fulfilling its obligations. Federal procurement databases often contain performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) that provide insights into a contractor's past performance regarding cost control, schedule adherence, technical management, and overall customer satisfaction. A review of MINACT, INC.'s broader contract portfolio and associated performance records would offer a more comprehensive understanding of their track record beyond this single contract.

What are the potential risks associated with a long-term (10+ year) contract for operating a Job Corps center?

Long-term contracts, like this 10+ year award, present several potential risks. Firstly, there's the risk of contractor complacency or a decline in service quality over time if performance monitoring is not rigorous. Secondly, market conditions, training needs, and federal policies can evolve significantly over a decade, potentially making the contracted services less relevant or efficient if the contract isn't adaptable. Thirdly, the government may miss out on potential cost savings or innovations that could arise from re-competition in a more dynamic market. Finally, a long duration can lock the government into a specific approach or provider, potentially hindering flexibility in response to unforeseen challenges or opportunities. Robust oversight and periodic reviews are crucial to mitigate these risks.

How does the 'full and open competition' aspect of this award impact the potential for innovation from the contractor?

The 'full and open competition' process, especially when coupled with performance-based metrics inherent in a CPIF contract, can foster innovation. By setting clear performance goals (e.g., higher placement rates, improved training outcomes), the government incentivizes the contractor to develop and implement creative solutions to achieve or exceed these targets. MINACT, INC. would be motivated to find more efficient training methods, better student support services, or stronger employer partnerships to gain the incentive fee. The competitive nature of the initial award also means that bidders are encouraged to propose innovative approaches to differentiate themselves and win the contract, setting a precedent for future performance.

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: DOLJ10RA00031

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 5220 KEELE ST, JACKSON, MS, 39206

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $106,524,751

Exercised Options: $87,425,165

Current Obligation: $52,739,214

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline