Department of Labor's $53M contract for Penobscot Job Corps Center operations awarded to Career Systems Development Corporation

Contract Overview

Contract Amount: $52,949,258 ($52.9M)

Contractor: Career Systems Development Corporation

Awarding Agency: Department of Labor

Start Date: 2011-01-01

End Date: 2016-06-30

Contract Duration: 2,007 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF THE PENOBSCOT JOB CORPS CENTER

Place of Performance

Location: BANGOR, PENOBSCOT County, MAINE, 04401

State: Maine Government Spending

Plain-Language Summary

Department of Labor obligated $52.9 million to CAREER SYSTEMS DEVELOPMENT CORPORATION for work described as: OPERATION OF THE PENOBSCOT JOB CORPS CENTER Key points: 1. The contract's value of over $50 million over its five-year term suggests a significant investment in workforce development. 2. The use of a Cost Plus Incentive Fee (CPIF) pricing structure indicates a focus on performance-based outcomes, potentially driving efficiency. 3. The contract was awarded via full and open competition, suggesting a robust market for these services. 4. The duration of the contract (over 5 years) implies a long-term commitment to the Job Corps program in Maine. 5. The specific North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The absence of small business set-aside flags suggests the primary contractor is likely not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided and the number of students served. However, a contract of this magnitude for operating a Job Corps center indicates a substantial commitment. The CPIF structure, while performance-oriented, can sometimes lead to higher costs if incentives are not carefully managed or if costs escalate beyond initial projections. Without comparable contract data for similar Job Corps centers or detailed cost breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. This competitive process is generally expected to foster price discovery and encourage competitive pricing among offerors. The fact that Career Systems Development Corporation was selected suggests they presented the most advantageous offer based on the evaluation criteria outlined in the solicitation.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it typically leads to more favorable pricing and better service quality compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the individuals enrolled in the Penobscot Job Corps Center, who receive training and support services. The contract delivers essential workforce development and vocational training services to prepare participants for employment. The geographic impact is focused on the state of Maine, specifically serving the community around the Penobscot Job Corps Center. The contract has implications for the local workforce, potentially creating jobs for instructors, support staff, and administrative personnel at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not rigorously managed.
Dependence on a single contractor for a significant period could limit flexibility in adapting to changing workforce needs.
Lack of explicit small business set-aside information raises questions about subcontracting opportunities for smaller firms.

Positive Signals

Awarded through full and open competition, suggesting a healthy market and potentially competitive pricing.
The Cost Plus Incentive Fee structure incentivizes contractor performance and efficiency.
Long contract duration indicates stability and a sustained commitment to the program's objectives.

Sector Analysis

This contract falls within the Education and Training sector, specifically focusing on vocational and technical education services provided by Job Corps centers. The market for operating such centers involves specialized educational providers competing for government contracts. Comparable spending benchmarks would involve analyzing other Job Corps center operations contracts and similar workforce development programs administered by federal agencies.

Small Business Impact

The contract details do not indicate a small business set-aside. This suggests that the competition was open to all qualified offerors, and the primary awardee is likely a larger entity. While not explicitly stated, there may be opportunities for small businesses to subcontract with Career Systems Development Corporation. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Accountability measures are likely embedded within the Cost Plus Incentive Fee structure, tying contractor payment to performance metrics. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Vocational Rehabilitation Services
Federal Job Training Programs

Risk Flags

Cost Overruns Potential
Performance Metric Definition Risk
Contractor Dependency
Limited Small Business Subcontracting Visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $52.9 million to CAREER SYSTEMS DEVELOPMENT CORPORATION. OPERATION OF THE PENOBSCOT JOB CORPS CENTER

Who is the contractor on this award?

The obligated recipient is CAREER SYSTEMS DEVELOPMENT 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 $52.9 million.

What is the period of performance?

Start: 2011-01-01. End: 2016-06-30.

What is the historical spending trend for the Penobscot Job Corps Center operations?

The provided data indicates a single contract award for the operation of the Penobscot Job Corps Center from January 1, 2011, to June 30, 2016, with a total value of $52,949,258. This represents an average annual expenditure of approximately $10.6 million over the five-year period. Without access to prior contract history for this specific center or data on other centers, it is difficult to establish a definitive spending trend. However, this figure suggests a consistent and substantial federal investment in maintaining the center's operations and services during this contract period.

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

To accurately compare the per-student cost, we would need the total number of students served by the Penobscot Job Corps Center during the contract period (2011-2016) and the total cost. The provided data gives the total contract value ($52,949,258) but not the student enrollment figures. Job Corps centers vary significantly in size, location, and the intensity of services provided, which directly impacts per-student costs. Factors such as the types of vocational training offered, the need for residential services, and local cost of living also influence these figures. A comprehensive comparison would require accessing enrollment data and contract values for a representative sample of other Job Corps centers nationwide.

What specific performance metrics were tied to the incentive fee in this Cost Plus Incentive Fee contract?

The provided data indicates the contract type was Cost Plus Incentive Fee (CPIF), but it does not specify the exact performance metrics used to determine the incentive fee. Typically, CPIF contracts link a portion of the contractor's profit to achieving or exceeding certain performance targets. For a Job Corps center operation, these metrics could include student graduation rates, job placement rates post-training, employer satisfaction with graduates, cost control measures, safety incident rates, and timely completion of training programs. The Department of Labor would have established these specific metrics in the contract's Statement of Work and evaluation criteria.

What is Career Systems Development Corporation's track record with federal contracts, particularly in workforce development?

Career Systems Development Corporation (CSDC) has a history of performing federal contracts, primarily related to workforce development and educational services. While the provided data focuses on this specific $53 million contract for the Penobscot Job Corps Center, CSDC has likely held other contracts with agencies like the Department of Labor and potentially others involved in training and education. A thorough assessment of their track record would involve reviewing their contract performance history, including past performance evaluations, any instances of contract disputes or terminations, and their success in meeting performance objectives on similar projects. Their longevity and ability to secure significant contracts suggest a generally positive performance history.

What risks are associated with operating a Job Corps center under a CPIF contract structure?

Operating a Job Corps center under a Cost Plus Incentive Fee (CPIF) structure presents several potential risks. Firstly, the 'cost plus' nature means the government reimburses the contractor for allowable costs, which can lead to higher overall expenditures if cost controls are not robust. Secondly, the 'incentive fee' component, while designed to reward performance, can sometimes lead to unintended consequences if the incentive targets are poorly defined or if contractors focus excessively on achieving metrics at the expense of other critical aspects of service delivery. There's also a risk that the contractor might inflate costs to increase the base upon which the incentive fee is calculated, although contract clauses usually mitigate this. Effective government oversight is crucial to manage these risks and ensure value for taxpayer money.

How has the federal government's approach to funding Job Corps centers evolved since this contract was awarded?

Since the award of this contract (2011-2016), the federal government's approach to funding Job Corps centers has continued to emphasize performance-based outcomes and efficiency. While the core mission remains, there have been ongoing efforts to refine program delivery, improve cost-effectiveness, and adapt training to evolving labor market demands. Funding levels can fluctuate based on congressional appropriations and administration priorities. Post-2016, there has been a continued focus on data-driven decision-making, potentially leading to adjustments in contract structures, performance metrics, and the types of services prioritized within Job Corps centers to ensure alignment with workforce needs.

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: DOLJ10RFP00001

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: OWL Companies (UEI: 044437796)

Address: 75 THRUWAY PARK DR STE 100, WEST HENRIETTA, NY, 14586

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

Financial Breakdown

Contract Ceiling: $98,725,218

Exercised Options: $69,475,557

Current Obligation: $52,949,258

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline