Department of Labor awards $54.5M contract for Atlanta Job Corps Center operations to Management & Training Corporation

Contract Overview

Contract Amount: $54,491,293 ($54.5M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2010-04-19

End Date: 2015-07-31

Contract Duration: 1,929 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF ATLANTA JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SUPPORT SERVICES FOR 515 STUDENTS.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30314

State: Georgia Government Spending

Plain-Language Summary

Department of Labor obligated $54.5 million to MANAGEMENT & TRAINING CORPORATION for work described as: OPERATION OF ATLANTA JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SUPPORT SERVICES FOR 515 STUDENTS. Key points: 1. The contract focuses on academic, career technical, social skills, and career development training for 515 students. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Incentive Fee, which can incentivize cost control but also carries inherent risk. 4. The sector is education/training, specifically technical and trade schools.

Value Assessment

Rating: fair

The contract value of $54.5 million over approximately 5 years for operating a Job Corps center is within a reasonable range for such services. Benchmarking against similar contracts for educational and training services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for effective job training programs.

Public Impact

Provides essential training and support services to 515 students, aiming to improve their career prospects. The operation of the Atlanta Job Corps Center contributes to workforce development in Georgia. The contract's success hinges on the quality of academic and vocational training provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can lead to cost overruns if not managed carefully.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
No indication of small business participation.

Positive Signals

Awarded through full and open competition, suggesting potential for good value.
Focus on job training and career development addresses a critical societal need.
Long-term contract duration allows for program stability and development.

Sector Analysis

The contract falls within the education and training sector, specifically focusing on vocational and technical skills development. Spending benchmarks for similar Job Corps center operations vary based on location, student capacity, and service scope.

Small Business Impact

The provided data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further investigation would be needed to determine if opportunities were overlooked or if the prime contractor does not subcontract to small businesses for these services.

Oversight & Accountability

Oversight by the Department of Labor's Employment and Training Administration is crucial to ensure the contractor meets performance standards and provides quality services. Regular performance reviews and audits are essential for accountability.

Related Government Programs

Other Technical and Trade Schools
Department of Labor Contracting
Employment and Training Administration Programs

Risk Flags

Cost Plus Incentive Fee contract type.
No explicit mention of small business utilization.
Performance metrics not detailed in the provided data.
Potential for cost overruns if incentives are not well-aligned with value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $54.5 million to MANAGEMENT & TRAINING CORPORATION. OPERATION OF ATLANTA JOB CORPS CENTER WHICH INCLUDES THE PROVISION OF ACADEMIC, CAREER TECHNICAL, SOCIAL SKILLS AND CAREER DEVELOPMENT TRAINING AND RELATED SUPPORT SERVICES FOR 515 STUDENTS.

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 $54.5 million.

What is the period of performance?

Start: 2010-04-19. End: 2015-07-31.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance measured against them?

Key performance indicators likely include student enrollment and retention rates, academic and vocational training completion rates, job placement rates post-training, and student satisfaction. The Department of Labor would typically establish specific, measurable, achievable, relevant, and time-bound (SMART) goals. Performance is assessed through regular reporting, site visits, and potentially independent evaluations to ensure the contractor is meeting contractual obligations and delivering effective training.

What is the potential risk associated with the Cost Plus Incentive Fee (CPIF) contract structure in this context?

A CPIF contract allows the contractor to earn a higher profit if they meet or exceed certain cost and performance targets. The risk lies in potential cost overruns if targets are not met or if the incentive structure encourages unnecessary spending to achieve bonuses. Effective government oversight is critical to monitor costs, ensure targets are reasonable, and prevent contractor behavior that prioritizes profit over program quality or efficiency.

How does the training provided by the Atlanta Job Corps Center align with current labor market demands?

The alignment depends on the specific vocational and technical programs offered. Effective Job Corps centers regularly update their curricula based on local and national labor market analyses to ensure graduates possess in-demand skills. The Department of Labor and the contractor should collaborate to identify high-growth industries and occupations, tailoring training programs accordingly to maximize graduate employment success and provide a return on taxpayer investment.

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: DOLJ10UA00030

Offers Received: 1

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: $79,964,701

Exercised Options: $77,421,113

Current Obligation: $54,491,293

Actual Outlays: $130,666

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline