Labor Awards $36M for Philadelphia Job Corps Center Operations to Management & Training Corp

Contract Overview

Contract Amount: $36,012,695 ($36.0M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Labor

Start Date: 2011-12-01

End Date: 2017-01-31

Contract Duration: 1,888 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: AWARD FOR THE OPERATION OF THE PHILADELPHIA JOB CORPS CENTER WITH O/A AND CTS COMPONENTS.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19145

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Labor obligated $36.0 million to MANAGEMENT & TRAINING CORPORATION for work described as: AWARD FOR THE OPERATION OF THE PHILADELPHIA JOB CORPS CENTER WITH O/A AND CTS COMPONENTS. Key points: 1. The contract awarded to Management & Training Corporation for operating the Philadelphia Job Corps Center is a significant investment in workforce development. 2. The use of a Cost Plus Incentive Fee (CPIF) contract suggests a focus on performance-based outcomes, potentially driving efficiency. 3. While the contract was awarded under full and open competition, the long duration and specific nature of the services warrant scrutiny for ongoing value. 4. The sector involves vocational training and education, a critical area for economic mobility and skilled labor supply.

Value Assessment

Rating: good

The contract value of $36 million over approximately 5 years for operating a Job Corps center appears reasonable when benchmarked against similar large-scale educational and training service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating a competitive bidding process that likely contributed to achieving a fair market price.

Taxpayer Impact: Taxpayer funds are being used to support workforce development, aiming for a return on investment through improved employment outcomes for participants.

Public Impact

Supports job training and skill development for individuals in Philadelphia. Aims to reduce unemployment and increase the skilled workforce in the region. The center's operations contribute to the local economy through employment and resource utilization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with CPIF contract type if not closely monitored.
Ensuring long-term effectiveness and participant success rates requires ongoing evaluation.

Positive Signals

Awarded through full and open competition.
Focus on workforce development and economic opportunity.

Sector Analysis

The sector involves educational services, specifically vocational training, which is crucial for addressing skills gaps and promoting economic mobility. Benchmarks for similar contracts often vary based on scale, location, and specific program requirements.

Small Business Impact

There is no explicit indication in the provided data whether small businesses were involved as subcontractors. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Labor, through the Office of the Assistant Secretary for Administration and Management, is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, cost control, and adherence to program goals.

Related Government Programs

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

Risk Flags

Contract duration and potential for complacency.
Effectiveness of CPIF structure in controlling costs.
Long-term sustainability of program outcomes.
Need for ongoing performance monitoring and evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $36.0 million to MANAGEMENT & TRAINING CORPORATION. AWARD FOR THE OPERATION OF THE PHILADELPHIA JOB CORPS CENTER WITH O/A AND CTS COMPONENTS.

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 $36.0 million.

What is the period of performance?

Start: 2011-12-01. End: 2017-01-31.

What are the key performance indicators (KPIs) for this contract, and how are they measured to ensure the effectiveness of the Job Corps center's operations and participant outcomes?

Key performance indicators likely include participant enrollment rates, completion rates, job placement success, and post-placement earnings. These are typically measured through regular reporting by the contractor and verified by the agency through data analysis and site visits. The effectiveness is judged by the contractor's ability to meet or exceed targets set in the contract, demonstrating value for taxpayer investment.

Given the CPIF contract type, what mechanisms are in place to manage potential cost escalations and ensure the government only pays for performance that meets or exceeds expectations?

A CPIF contract includes an incentive fee tied to achieving specific performance targets. The government establishes baseline costs and target profits, with adjustments made based on contractor performance against pre-defined metrics. Robust oversight, regular audits, and clear communication channels are essential to monitor costs, validate performance data, and ensure that incentive fees are appropriately awarded, preventing unwarranted cost increases.

How does the performance of this Job Corps center compare to other similar centers operated under contract, both in terms of operational efficiency and participant success rates?

A comparative analysis would require access to performance data across multiple Job Corps centers. Benchmarking against similar contracts would involve evaluating metrics such as cost per participant, graduation rates, and employment placement rates. Such comparisons are vital for identifying best practices, areas for improvement, and ensuring that taxpayer funds are allocated to the most effective programs and contractors.

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

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $375,355,668

Exercised Options: $210,110,925

Current Obligation: $36,012,695

Actual Outlays: $510,667

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline