Department of Labor awards $86.3M contract to Management & Training Corporation for Keystone Job Corps Center operations

Contract Overview

Contract Amount: $86,321,027 ($86.3M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2011-04-27

End Date: 2022-01-28

Contract Duration: 3,929 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CONTRACT AWARD FOR THE OPERATION OF THE KEYSTONE JOB CORPS CENTER. THE CONTRACT ALSO INCLUDES OUTREACH AND ADMISSIONS OPERATIONS AND CAREER TRANSITION SERVICES OPERATIONS.

Place of Performance

Location: DRUMS, LUZERNE County, PENNSYLVANIA, 18222

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $86.3 million to MANAGEMENT & TRAINING CORPORATION for work described as: CONTRACT AWARD FOR THE OPERATION OF THE KEYSTONE JOB CORPS CENTER. THE CONTRACT ALSO INCLUDES OUTREACH AND ADMISSIONS OPERATIONS AND CAREER TRANSITION SERVICES OPERATIONS. Key points: 1. The contract covers operations, outreach, admissions, and career transition services. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. The contract duration is over 10 years, suggesting a long-term need. 4. The sector is 'Other Technical and Trade Schools', a niche area within education services.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The base award amount is $86.3M, with a potential value not specified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific details of the bidding and final pricing are not provided.

Taxpayer Impact: The use of taxpayer funds for job training programs aims to benefit individuals and the economy, but cost-effectiveness is key.

Public Impact

Provides essential job training and career services to individuals in Pennsylvania. Supports economic development by equipping individuals with marketable skills. The long-term nature of the contract ensures continuity of services for participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of specified ceiling or total contract value limits full assessment.
Long contract duration may not reflect current market needs or efficiencies.

Positive Signals

Awarded through full and open competition.
Addresses a critical need for workforce development.
Includes comprehensive services from operations to career transition.

Sector Analysis

This contract falls within the 'Other Technical and Trade Schools' sector, which is part of the broader education and workforce development industry. Spending in this sector is often driven by government initiatives to address skills gaps and unemployment.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract is managed by the Department of Labor's Office of the Assistant Secretary for Administration and Management, suggesting a level of oversight. However, the effectiveness of this oversight in controlling costs and ensuring performance is not detailed.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (over 10 years).
No small business participation indicated.
Lack of transparency on total contract value and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $86.3 million to MANAGEMENT & TRAINING CORPORATION. CONTRACT AWARD FOR THE OPERATION OF THE KEYSTONE JOB CORPS CENTER. THE CONTRACT ALSO INCLUDES OUTREACH AND ADMISSIONS OPERATIONS AND CAREER TRANSITION SERVICES OPERATIONS.

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

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 $86.3 million.

What is the period of performance?

Start: 2011-04-27. End: 2022-01-28.

What is the total potential value of this contract, including all options and modifications, and how does it compare to similar Job Corps center operations?

The provided data only lists the base award amount of $86.3 million. Without information on contract options, modifications, or a defined ceiling, it's impossible to determine the total potential value. Benchmarking against similar Job Corps center contracts would require access to a broader dataset of government procurements and their associated values and performance metrics.

What are the key performance indicators (KPIs) for this contract, and how has the contractor performed against them, particularly concerning cost efficiency and participant outcomes?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract or any performance reports. Assessing cost efficiency and participant outcomes would require access to contract performance evaluations, quality assurance reviews, and data on job placement rates and participant success metrics.

Given the Cost Plus Fixed Fee structure and the long duration, what mechanisms are in place to ensure the contractor remains incentivized to control costs and deliver high-quality services efficiently

Cost Plus Fixed Fee contracts can present challenges in cost control. While the fixed fee provides some incentive, the 'cost plus' element means the government covers allowable costs. Robust oversight, clear performance standards, and potentially incentive fee structures tied to specific outcomes are crucial. The effectiveness of these mechanisms for this specific contract is not detailed in the provided data.

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: 10JCREG2KEY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR STE 100, 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: $1,177,699,087

Exercised Options: $667,141,792

Current Obligation: $86,321,027

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline