Labor Department Awards $61.2M for Charleston Job Corps Center Operations and Career Transition Services

Contract Overview

Contract Amount: $61,202,128 ($61.2M)

Contractor: Horizons Youth Services, L.C.

Awarding Agency: Department of Labor

Start Date: 2011-02-28

End Date: 2016-09-30

Contract Duration: 2,041 days

Daily Burn Rate: $30.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: CONTRACT AWARD FOR THE OPERATION OF THE CHARLESTON JOB CORPS CENTER IN CHARLESTON, WEST VIRGINIA AND POST CENTER CAREER TRANSITION SERVICES ANNUALLY FOR 250 GRADUATES AND 80 FORMER ENROLLEES RETURNING TO THE STATE OF WEST VIRGINIA.

Place of Performance

Location: CHARLESTON, KANAWHA County, WEST VIRGINIA, 25311

State: West Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $61.2 million to HORIZONS YOUTH SERVICES, L.C. for work described as: CONTRACT AWARD FOR THE OPERATION OF THE CHARLESTON JOB CORPS CENTER IN CHARLESTON, WEST VIRGINIA AND POST CENTER CAREER TRANSITION SERVICES ANNUALLY FOR 250 GRADUATES AND 80 FORMER ENROLLEES RETURNING TO THE STATE OF WEST VIRGINIA. Key points: 1. The contract focuses on vocational training and career services for graduates and former enrollees. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risk. 4. The sector involves educational services and workforce development, a critical area for public investment.

Value Assessment

Rating: fair

The contract value of $61.2 million over approximately 5.5 years averages to about $11.1 million annually. Benchmarking this against similar Job Corps center operations requires detailed cost breakdowns not provided, but the scale appears consistent with the program's scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: Taxpayer funds are being used to support workforce development and provide essential training and transition services, aiming for long-term economic benefits for individuals and the state.

Public Impact

Provides critical job training and career services to individuals in West Virginia. Supports economic development by equipping individuals with skills for employment. The program aims to reduce unemployment and recidivism through vocational education.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type can lead to cost overruns if not managed carefully.
Lack of specific performance metrics makes it difficult to assess effectiveness.
No indication of small business participation.

Positive Signals

Full and open competition suggests potential for good value.
Focus on workforce development addresses a key societal need.
Services provided aim for long-term positive economic impact.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' NAICS code, related to workforce development and vocational training. Spending in this sector is crucial for addressing skills gaps and supporting economic mobility.

Small Business Impact

The data indicates that small businesses were not a specific focus of this award (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Labor, specifically the Office of the Assistant Secretary for Administration and Management, is responsible for this award. Oversight would involve monitoring the contractor's performance against the CPIF contract terms and ensuring program objectives are met.

Related Government Programs

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

Risk Flags

CPIF contract type introduces potential for cost overruns.
Lack of detailed performance metrics makes effectiveness assessment difficult.
No explicit mention of small business subcontracting goals.
Contract duration is substantial, requiring ongoing monitoring.
Limited insight into contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $61.2 million to HORIZONS YOUTH SERVICES, L.C.. CONTRACT AWARD FOR THE OPERATION OF THE CHARLESTON JOB CORPS CENTER IN CHARLESTON, WEST VIRGINIA AND POST CENTER CAREER TRANSITION SERVICES ANNUALLY FOR 250 GRADUATES AND 80 FORMER ENROLLEES RETURNING TO THE STATE OF WEST VIRGINIA.

Who is the contractor on this award?

The obligated recipient is HORIZONS YOUTH SERVICES, L.C..

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 $61.2 million.

What is the period of performance?

Start: 2011-02-28. End: 2016-09-30.

What is the cost per enrollee or graduate served by this contract, and how does it compare to national averages for similar programs?

The total contract value is $61.2 million over approximately 2041 days (about 5.6 years). Serving an average of 250 graduates and 80 former enrollees annually means roughly 330 individuals per year. This results in an approximate annual cost of $11.1 million, or about $33,600 per individual served annually. Benchmarking this against national averages for Job Corps centers requires access to specific program cost data and is not readily available.

What are the specific incentive metrics in the Cost Plus Incentive Fee (CPIF) structure, and how effectively do they align with desired program outcomes?

The provided data does not detail the specific incentive metrics within the CPIF structure. CPIF contracts typically tie a portion of the fee to achieving cost savings or performance targets. Without knowing these targets, it's impossible to assess their alignment with desired outcomes like graduate employment rates, wage increases, or successful career transitions.

What is the track record of Horizons Youth Services, L.C. in operating similar Job Corps centers or providing comparable workforce development services?

Information regarding the specific performance history and track record of Horizons Youth Services, L.C. in operating Job Corps centers or similar programs is not included in the provided data. A thorough assessment of value and risk would necessitate reviewing past performance, client satisfaction, and success rates in previous contracts.

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: DOL10JCREG2CHAR

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Endless Horizons Inc (UEI: 103263760)

Address: 3586 HORIZONS WAY, HARRISONBURG, VA, 22802

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

Financial Breakdown

Contract Ceiling: $1,037,035,556

Exercised Options: $561,355,906

Current Obligation: $61,202,128

Actual Outlays: $-248,178

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline