Department of Labor awards $34.5M contract for Miami Job Corps Center operations to Res-Care, Inc

Contract Overview

Contract Amount: $34,544,836 ($34.5M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2010-01-01

End Date: 2015-06-30

Contract Duration: 2,006 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF MIAMI JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING FOR 300 STUDENTS.

Place of Performance

Location: MIAMI GARDENS, MIAMI-DADE County, FLORIDA, 33056

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $34.5 million to RES-CARE, INC for work described as: OPERATION OF MIAMI JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING FOR 300 STUDENTS. Key points: 1. Contract focuses on academic, career technical, social skills, and career development training for 300 students. 2. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives. 3. Duration of the contract is over 5 years, indicating a long-term commitment to service provision. 4. The contract was awarded under full and open competition, implying a competitive bidding process. 5. The North American Industry Classification System (NAICS) code 611519 points to a specialized training service. 6. The contract's value of $34.5 million over its term suggests a significant investment in workforce development. 7. The contract is for the operation of a Job Corps center, a program aimed at at-risk youth. 8. The awardee, Res-Care, Inc., has experience in providing similar services.

Value Assessment

Rating: good

The contract value of $34.5 million over approximately 5.5 years for operating a Job Corps center serving 300 students appears reasonable. Benchmarking against similar Job Corps center operations would provide a more precise value-for-money assessment. The Cost Plus Incentive Fee (CPIF) contract type allows for cost savings to be shared, incentivizing efficiency, but requires careful monitoring of costs against performance metrics to ensure optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive down costs and ensure the government receives the best value. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure cost-effective services for the Miami Job Corps Center, ensuring that public funds are used efficiently to provide essential training and development opportunities.

Public Impact

Benefits at-risk youth and young adults in the Miami area by providing comprehensive training and support services. Delivers academic education, career technical training, social skills development, and career placement assistance. Geographic impact is focused on Miami-Dade County, Florida, serving the local student population. Workforce implications include training individuals for entry-level to mid-level skilled positions, contributing to the local labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if performance incentives are not structured effectively.
Ensuring consistent quality of training across all program areas requires diligent oversight.
Student retention and successful placement rates are key performance indicators that need continuous monitoring.

Positive Signals

Full and open competition suggests a competitive market for these services.
The CPIF contract structure incentivizes the contractor to manage costs efficiently.
The long-term nature of the contract provides stability for service delivery and student planning.

Sector Analysis

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

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Further analysis would be needed to determine if small businesses were involved in the bidding process or if subcontracting opportunities were mandated.

Oversight & Accountability

Oversight of this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures would be tied to the performance metrics outlined in the Cost Plus Incentive Fee contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational oversight details are not provided.

Related Government Programs

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

Risk Flags

Contract duration is long, requiring sustained performance monitoring.
CPIF contract type necessitates careful tracking of costs and performance metrics.
Success is dependent on effective student recruitment, retention, and job placement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $34.5 million to RES-CARE, INC. OPERATION OF MIAMI JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING FOR 300 STUDENTS.

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 $34.5 million.

What is the period of performance?

Start: 2010-01-01. End: 2015-06-30.

What is Res-Care, Inc.'s track record in operating Job Corps centers or similar workforce development programs?

Res-Care, Inc. has a history of providing a range of human services, including workforce development and education. While specific details on their performance with other Job Corps centers are not provided in this data snippet, their experience in related fields suggests a capacity to manage such operations. A deeper dive into their past performance evaluations, client feedback, and contract compliance history with government agencies would be necessary for a comprehensive assessment of their track record. This would include examining their success rates in student training, placement, and adherence to program requirements across previous contracts.

How does the per-student cost of this contract compare to other Job Corps centers nationally?

The total contract value is $34,544,835.68 over a period of approximately 5.5 years (January 1, 2010, to June 30, 2015), serving 300 students. This equates to an approximate annual cost of $6,280,879 per year, or roughly $20,936 per student per year. Benchmarking this against national averages for Job Corps centers would require access to detailed cost data from other centers, which is not readily available in this dataset. However, this figure can serve as a baseline for comparison with similar urban or regional Job Corps centers, considering variations in cost of living and program intensity.

What are the primary risk indicators associated with operating a Job Corps center under a Cost Plus Incentive Fee (CPIF) contract?

Key risk indicators for a CPIF contract in operating a Job Corps center include the potential for scope creep if performance objectives are not clearly defined, and the contractor's ability to meet or exceed those objectives to earn incentive fees. There's also a risk related to accurate cost accounting and reporting, as the 'cost plus' element requires robust financial oversight. Furthermore, risks associated with student recruitment, retention, and successful job placement are inherent to the Job Corps mission. The government must actively monitor contractor performance against established metrics and ensure that incentive fees are genuinely earned through value-added outcomes, rather than simply covering costs.

How effective has the Miami Job Corps Center been in achieving its training and placement goals historically?

Historical effectiveness data for the Miami Job Corps Center under this specific contract (2010-2015) is not provided in the current data. To assess effectiveness, one would need to examine key performance indicators such as student graduation rates, the percentage of students obtaining industry-recognized credentials, job placement rates post-graduation, and the average starting wages of placed graduates. Comparisons with national Job Corps performance averages and trends over time would also be crucial. Information from the Department of Labor's performance reports or Inspector General audits related to this center would be the primary source for such an analysis.

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

The provided data reflects a single contract award of $34,544,835.68 for the operation of the Miami Job Corps Center from January 1, 2010, to June 30, 2015. This represents the spending for that specific period. To understand the historical spending trend, one would need to examine previous contracts awarded for the operation of this center, as well as any subsequent contracts. Analyzing the total obligated amounts, contract durations, and awardees over a longer timeframe would reveal patterns in federal investment in the Miami Job Corps program and identify any significant increases or decreases in funding.

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: MIAMI JCC

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carestream Health, Inc. (UEI: 244882650)

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: $47,686,107

Exercised Options: $46,810,892

Current Obligation: $34,544,836

Actual Outlays: $-89,515

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline